9 hrs ago
Odisha Adds 25% Capex Support for Semiconductor Projects
Odisha wants to become an important center for making computer chips and related products.
The State will give companies extra financial help equal to 25% of eligible construction and equipment costs.
This help is for projects approved under India’s semiconductor programme.
It includes factories making chip equipment, special chemicals, gases and materials.
Odisha says five approved projects could create more than 20,500 direct and indirect jobs.
One company has already installed equipment to make silicon carbide wafers in Bhubaneswar.
Other companies are considering packaging, raw-material and advanced chip projects.
The State also plans a research hub at IIT Bhubaneswar to support power-electronics technology.
Odisha announced an additional 25% fiscal support on eligible capital expenditure for Centre-approved semiconductor projects.
The support covers equipment manufacturing, semiconductor-grade chemicals, gases, materials and other supply-chain segments.
The State says it has five approved semiconductor projects representing Rs 10,899 crore in investment and more than 20,500 expected jobs.
RIR Power Electronics has completed installation of silicon carbide epitaxial wafer manufacturing reactors in Bhubaneswar.
Odisha is also pursuing advanced packaging, SiC and GaN manufacturing, raw-material facilities and a Rs 452 crore research hub at IIT Bhubaneswar.
- Who
- The Odisha government, led by Chief Minister Mohan Charan Majhi, and semiconductor companies involved in approved or proposed projects.
- What
- Odisha announced an additional 25% fiscal support on eligible capital expenditure for semiconductor projects aligned with the Centre's Semicon 2.0 programme.
- Where
- Odisha, including semiconductor facilities and the proposed research hub at Bhubaneswar.
- When
- The announcement was made on Friday; it follows the Union Cabinet's approval of Semicon 2.0 in July 2026.
- Why
- To build a semiconductor and electronics ecosystem, strengthen local supply chains, support MSMEs, create skilled jobs and attract investment.
Key facts
- Additional support
- 25% of eligible capital expenditure for approved projects
- National programme
- Semicon 2.0 has a Rs 1,27,500 crore outlay
- Approved Odisha projects
- Five projects with cumulative investment of Rs 10,899 crore
- Expected employment
- More than 4,500 direct jobs and over 16,000 indirect jobs
- Investment pipeline
- USD 4.7 billion, including USD 1.2 billion committed and USD 3.5 billion upcoming
- Research hub
- A Rs 452 crore National Industry Co-Development Hub on Integrated Power Electronics at IIT Bhubaneswar
- Manufacturing milestone
- RIR Power Electronics completed installation of silicon carbide epitaxial wafer manufacturing reactors in Bhubaneswar
Quotes
Mohan Charan Majhi
Chief Minister of Odisha
“The State is not merely attracting individual projects but is systematically building a complete semiconductor ecosystem. Odisha is ready to work closely with global technology leaders, innovators, investors and entrepreneurs who wish to participate in building the future of technology in Viksit Odisha for a Viksit Bharat. We are not only investment-friendly but also technology-friendly.”
thehansindia.com
“Moreover, it will be a catalyst for developing a robust semiconductor and electronics manufacturing ecosystem in Odisha by promoting MSMEs, strengthening local supply chains, fostering industry-academia collaboration, and driving targeted skilling initiatives to build a future-ready workforce, creating a strong multiplier effect across the industrial ecosystem.”
thehansindia.com
Sources
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