Odisha’s semiconductor push gets an 870-acre hub

Odisha is expanding its semiconductor initiatives, unveiling a "Silicon Valley" near Cuttack and offering additional financial backing for projects throughout the chip supply chain. Chief Minister Mohan Charan Majhi disclosed the planned Odisha Silicon Valley at Naraj, a site between Cuttack and Bhubaneswar, during SEMICON India 2026 in New Delhi.

The hub will accommodate significant semiconductor, electronics, and IT ventures, positioning itself as an industry cluster for the future. Majhi revealed that 870 acres near Naraj have been designated for the proposed semiconductor cluster, boasting connectivity to the Cuttack-Bhubaneswar urban corridor, access to major ports like Paradip and Dhamra, and proximity to the Mahanadi river, which the state views as advantageous for water-intensive industries.

This announcement coincides with Odisha's attempt to extend its semiconductor ambitions beyond isolated projects to a broader manufacturing ecosystem. The chief minister also reported engagement with 10-12 international companies, including Japan and Sweden, regarding potential semiconductor investments. Five semiconductor projects are currently under construction in Odisha, while talks are ongoing with three more.

Two of the 12 projects approved nationally under the India Semiconductor Mission are situated in Odisha, namely SiCSem's silicon carbide semiconductor fab and integrated packaging facility, and 3D Glass Solutions' advanced glass substrate packaging facility. The state government has also approved five semiconductor projects worth around Rs 11,000 crore, expected to create approximately 4,500 direct and 16,000 indirect jobs.

Odisha's total semiconductor investment pipeline amounts to about $4.7 billion, with $1.2 billion already secured and another $3.5 billion in pending investments. The state is broadening policy incentives to companies involved in earlier stages of the semiconductor supply chain. Odisha is among the first states to align its semiconductor policy with the Center's Semicon 2.0 program, which includes a Rs 1,27,500 crore allocation to enhance India's semiconductor design and manufacturing ecosystem.

Additionally, discussions are ongoing to convert existing agreements and proposals into larger investments. Majhi mentioned talks with Intel-3DGS for a substantial investment in advanced glass substrate and packaging, totaling $3.3 billion or Rs 30,550 crore, and over 1,800 direct jobs. The state is also exploring a second-phase advanced packaging facility with Sancode Technologies and a combined silicon carbide and gallium nitride fab and packaging unit under SiCSem's Phase-II expansion.

QuadQuantum has signed a Letter of Intent with Odisha for a semiconductor facility to produce silicon carbide substrate wafers, and RIR Power Electronics has completed the erection of silicon carbide epitaxial wafer manufacturing reactors in Bhubaneswar, with commercial production anticipated soon.