Odisha Gets Rs 23,600 Cr Semiconductor Investment Proposals
QuadQuantum has proposed a silicon carbide substrate wafer facility, while Sancode Technologies and SiCSem are exploring advanced packaging and chip manufacturing projects
Odisha has received investment proposals worth about Rs 23,600 crore for semiconductor projects, with the proposals at various stages of review, state officials said.
Among the proposals is one from QuadQuantum to establish a silicon carbide (SiC) substrate wafer facility in the state, Chief Minister Mohan Charan Majhi said while addressing media at Semicon India 2026.
The proposals are at various stages of review. The state is also in talks with Sancode Technologies over a second-phase advanced packaging facility, while SiCSem is exploring a combined SiC and gallium nitride (GaN) fab and packaging unit under a Phase-II expansion, and QuadQuantum is examining a raw material SiC wafers facility, Majhi said.
During the event, Majhi met semiconductor and technology companies, industry bodies, and delegations from Japan, Sweden and Taiwan. The companies included Lam Research, Applied Materials, SiCSem, 3D Glass Solutions, Cyient, Linde and Horiba India.
Separately, Odisha has five approved semiconductor manufacturing projects with a combined investment of Rs 10,899 crore, Majhi said. The projects cover SiC semiconductors, advanced packaging, glass substrate packaging, memory module assembly and power electronics. They are expected to create more than 4,500 direct jobs and over 16,000 indirect jobs.
SiCSem's integrated SiC fab and packaging facility and Heterogeneous Integration Packaging Solutions' (HIPS/3DGS) glass substrate packaging unit are among the 12 semiconductor projects approved nationally under the India Semiconductor Mission (ISM).
Naraj Silicon Valley Plan
The state has also announced an 870-acre semiconductor and electronics hub at Naraj near Cuttack, to be called Odisha Silicon Valley. It is planned to house projects across semiconductors, electronics and information technology.
The site connects to the Cuttack-Bhubaneswar urban corridor and offers access to national highways and to the Paradip and Dhamra ports. The government also cites its proximity to the Mahanadi River as an advantage for industries with heavy water needs.
"The area for Odisha Silicon Valley in Naraj offers a highly favourable strategic location from the standpoint of connectivity and industrial infrastructure…Semiconductor fabrication facilities and assembly units require reliable access to substantial quantities of water and power, and the site's proximity to the Mahanadi River provides a significant locational advantage for meeting industrial water requirements," Majhi said.
The government is also citing the site’s proximity to the Mahanadi River as a factor for industries with substantial water requirements. “Semiconductor fabrication facilities and assembly units require reliable access to substantial quantities of water and power, and the site’s proximity to the Mahanadi River provides a significant locational advantage for meeting industrial water requirements. Combined with its connectivity and infrastructure potential, Naraj offers a strong foundation for developing a world-class semiconductor and electronics ecosystem,” he said.
“Naraj will be a potential strategic hub for the semiconductor supply chain, logistics and allied industries,” he said.
Fiscal Support
Odisha will provide an additional 25 per cent fiscal support on eligible capital expenditure (capex) for ISM-approved projects. The support covers semiconductor equipment manufacturing, semiconductor-grade chemicals, gases and materials, and other supply-chain segments. The state's policy also supports engineer relocation, workforce training, internships, international patent applications, and research and development.
The move follows the Centre's ISM 2.0 programme, which the Union Cabinet approved in July 2026 with an outlay of Rs 1,27,500 crore.
"Our approach is to build the ecosystem around semiconductor investments, not look at projects in isolation," said Odisha Minister for Electronics & Information Technology Mukesh Mahaling. "Odisha has been an early mover in aligning its policy framework with ISM 2.0, while widening support to areas such as equipment, materials, gases and the supply chain."
On project progress, RIR Power Electronics has completed erection and installation of reactors at its Bhubaneswar facility for SiC epitaxial wafer manufacturing, Majhi said. Commercial production at its integrated SiC facility is expected to begin soon.
The state is also in talks with Intel-3DGS to convert its memorandum of understanding into a proposed investment in advanced glass substrates and packaging. SiCSem is exploring a Phase-II expansion involving a combined SiC and gallium nitride (GaN) fab and packaging facility.
Odisha has also approved a Rs 452 crore National Industry Co-Development Hub on Integrated Power Electronics at the Indian Institute of Technology (IIT) Bhubaneswar under the Indian Design, Semiconductors, Packaging and Systems programme.