Odisha Plans 'Silicon Valley' to Attract Semiconductor Firms
India's Odisha state plans to establish an 'Odisha Silicon Valley' to draw semiconductor companies. The state aims to transition from a mineral-rich region to a hub for high-technology chip manufacturing.
The Indian state of Odisha is planning to establish a new technology cluster, dubbed 'Odisha Silicon Valley,' across an 870-acre stretch between Cuttack and Bhubaneswar. The state aims to transform from a region known for its mineral wealth into a center for high-technology chip manufacturing, with significant investments planned in semiconductors, artificial intelligence, and data centers.
Odisha's Chief Minister Mohan Charan Majhi announced the plans during the Semicon India event. He stated that the government is in discussions with international semiconductor companies from Sweden, Japan, and other countries to explore potential projects related to semiconductors, AI, and data centers within the state.
Two semiconductor projects are already underway in Odisha. Sicsem Pvt Ltd is constructing India's first silicon carbide fabrication and integrated packaging facility. 3D Glass Solutions is developing a glass-substrate packaging facility. A phase-two project with Sicsem, focusing on silicon carbide epitaxy and packaging, is also in progress.
The state has approved five new semiconductor projects valued at approximately ₹11,000 crore (roughly $1.3 billion USD), expected to create around 4,500 direct jobs and over 16,000 indirect positions. Additionally, Intel and 3D Glass Solutions have signed a memorandum of understanding to bring $3.3 billion (₹30,550 crore) in investment and over 1,800 direct jobs to the state.
Odisha is also supporting research and commercialization by investing ₹125 crore ($15 million USD) in a National Industry Co-Development Hub for Integrated Power Electronics, in collaboration with IIT Bhubaneswar and the National Research Foundation. The state's semiconductor policy has been updated to offer incentives of up to 25% of capital expenditure for projects approved under the India Semiconductor Mission. The government is also focusing on specialized training programs at the World Skill Center, in partnership with the Singapore government, to ensure a skilled workforce for the technology sector.