Odisha Plans To Set Up A ‘Silicon Valley’ To Woo Semiconductor Companies

Odisha, led by Chief Minister Mohan Charan Majhi, is aiming to transform from a mineral-rich region into a burgeoning semiconductor hub. The state has set its sights on an 870-acre stretch, nestled between Cuttack and Bhubaneswar, where it plans to establish an 'Odisha Silicon Valley'. This venture intends to draw semiconductor companies from around the world, including those based in Sweden and Japan, to create a niche for advanced chip-making, AI applications, and data centres in the area.

Construction on two central government-approved projects has already commenced. These include Sicsem Pvt Ltd's first-of-its-kind silicon carbide fabricating facility and integrated packaging unit, as well as 3D Glass Solutions' groundbreaking glass-substrate packaging facility. Additionally, a Phase 2 project with Sicsem is in the pipeline to construct a silicon carbide epitaxy and packaging facility, as announced by the CM.

The Odisha government has already approved five additional semiconductor projects, each worth around ₹11,000 Cr, expected to generate approximately 4,500 direct jobs and over 16,000 indirect jobs. Companies like RiR Power Electronics, Sancorn Technology, and ASP Semiconductor have already signed memorandums of understanding (MOUs) for semiconductor projects, while Intel and 3D Glass Solutions have also committed to a partnership that promises $3.3 Bn (₹30,550 Cr) in investments and over 1,800 direct jobs.

To bolster research and commercialization efforts, Odisha is investing ₹125 Cr towards the creation of a ₹452 Cr National Industry Co-Development Hub on Integrated Power Electronics, co-developed with IIT Bhubaneswar and the National Research Foundation. The state government has also revised its semiconductor policy, committing up to 25% of the capital expenditure (capex) for projects approved under the India Semiconductor Mission.

This investment, coupled with full infrastructure support and incentives, makes Odisha an attractive and competitive destination for semiconductor projects, according to the CM. Specialized training programs at the World Skill Center in Bhubaneswar, established in collaboration with the Singapore government, aim to address the demand for highly skilled labor in the technology sector.

Beyond this center, several Industrial Training Institutes (ITIs) have been upgraded into Institutes of National Excellence, equipped with state-of-the-art labs and modern training facilities.

The Odisha government is committed to prioritizing skill-based employability over local hiring quotas to ensure that the youth of Odisha can seamlessly integrate into the thriving tech ecosystem.