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Odisha’s semiconductor push gets an 870-acre hub

By Sohail Khan 18 September 2026, 10:42 pm

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Business News›AI›AI Insights›Odisha plans 'Silicon Valley' near Cuttack, offers 25% extra capex support for chip projects: CM Majhi

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Odisha plans 'Silicon Valley' near Cuttack, offers 25% extra capex support for chip projects: CM Majhi
Synopsis

Odisha plans a new "Silicon Valley" near Cuttack to attract chip industry investments. The state will offer additional fiscal support for supply chain projects. Discussions are ongoing with several international companies for semiconductor investments. Existing projects are under construction and expansion plans are being explored.

Odisha is stepping up its semiconductor push, announcing a “Silicon Valley” near Cuttack and additional fiscal support for projects across the chip supply chain as the state looks to attract more investments beyond semiconductor manufacturing.

Chief Minister Mohan Charan Majhi announced the proposed Odisha Silicon Valley at Naraj, between Cuttack and Bhubaneswar, during SEMICON India 2026 in New Delhi on Friday. The hub will host major semiconductor, electronics and IT projects, with the state positioning the site as a future cluster for the industry.

Majhi told reporters during a press meet at the conference that the state had identified 870 acres near Naraj for the proposed semiconductor cluster. The location has connectivity to the Cuttack-Bhubaneswar urban corridor, access to major ports including Paradip and Dhamra, and proximity to the Mahanadi, which the state sees as an advantage for industries requiring large quantities of water.

The announcement comes as Odisha seeks to broaden its semiconductor ambitions from individual projects to a larger manufacturing ecosystem.

Also Read: Indian states look beyond incentives to drive semicon mission

Majhi said that Odisha was engaging with around 10-12 companies from different countries, including Japan and Sweden, over potential semiconductor investments.

“Five semiconductor projects are currently under construction in Odisha, while discussions are underway with three more projects,” he added.

Two of the 12 projects approved nationally under the India Semiconductor Mission are in Odisha. SiCSem is setting up a silicon carbide semiconductor fab and integrated packaging facility, while 3D Glass Solutions is developing an advanced glass substrate packaging facility.

The state government has separately approved five semiconductor projects involving investments of around Rs 11,000 crore, which are expected to generate about 4,500 direct and more than 16,000 indirect jobs, Majhi said.

Odisha’s overall semiconductor investment pipeline stands at about $4.7 billion, with $1.2 billion already committed and another $3.5 billion in upcoming investments, according to the state government.

The state is also widening its policy support to companies that sit further upstream in the semiconductor supply chain.

Odisha announced an additional 25% fiscal support on eligible capital expenditure for India Semiconductor Mission-approved projects, covering semiconductor equipment manufacturing, semiconductor-grade chemicals, gases, materials and other supply-chain segments.

Majhi also said that Odisha was among the early states to align its semiconductor policy with the Centre’s Semicon 2.0 programme.

“We will be providing an additional 25 per cent State fiscal support on eligible capital expenditure (Capex) for ISM-approved projects, including semiconductor equipment manufacturing, semiconductor-grade chemicals, gases and materials, and other semiconductor supply chain segments,” he said.

The policy move follows the Union Cabinet’s approval of Semicon 2.0, which has a Rs 1,27,500 crore outlay aimed at expanding India’s semiconductor design and manufacturing ecosystem.

Odisha is also looking to convert some of its existing agreements and proposals into larger investments.

Majhi added that discussions were underway to convert the Intel-3DGS memorandum of understanding into a large-scale investment in advanced glass substrate and packaging. The MoU envisages an investment of around $3.3 billion, or Rs 30,550 crore, and more than 1,800 direct jobs, according to the state government.

Talks are also underway with Sancode Technologies for a second-phase advanced packaging facility, while SiCSem is exploring a combined silicon carbide and gallium nitride fab and packaging unit under a Phase-II expansion.

QuadQuantum has signed a Letter of Intent with the Odisha government for a semiconductor facility to produce silicon carbide substrate wafers.

Majhi also said RIR Power Electronics had completed the erection and installation of silicon carbide epitaxial wafer manufacturing reactors at its Bhubaneswar facility. Commercial production is expected to begin soon, he said.

Also Read: India sees $11–12 bn chip investment interest under Semicon 2.0: Ashwini Vaishnaw

The state government said it received investment proposals worth approximately Rs 23,600 crore during SEMICON India 2026, with the potential to generate around 6,100 jobs. The proposals came as Majhi and state officials held meetings with semiconductor and technology companies, industry bodies and international delegations, including from Japan, Sweden and Taiwan.

Companies engaged during the event included Lam Research, Applied Materials, SiCSem, 3D Glass Solutions, Cyient, Linde and HORIBA India.

The state is also building supporting infrastructure and research capabilities. Majhi said Odisha had approved a Rs 452 crore National Industry Co-Development Hub on Integrated Power Electronics at IIT Bhubaneswar under the Indian Design, Semiconductors, Packaging and Systems programme. The project will be jointly funded by the Ministry of Electronics and Information Technology, the Odisha government, the Anusandhan National Research Foundation and industry partners.

The state is also developing its third IT park, spread across about 1,000 acres.

Majhi added that Odisha’s strategy was to build a cluster around semiconductor investments rather than focus on individual projects.

“The State is not merely attracting individual projects but is systematically building a complete semiconductor ecosystem,” he said. “We are not only investment-friendly but also technology-friendly.”

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