Centre approves two semiconductor units for Odisha

Economic Times

2 days ago

TIMESOFINDIA.COM Chief Minister Mohan Charan Majhi on Tuesday said the Union Cabinet's approval for the establishment of two semiconductor units in Odisha will accelerate the state's growth in the sector.The CM expressed his gratitude to Prime Minister Narendra Modi and Union minister Ashwini Vaishnaw for the Centre's approval of the two semiconductor units in Odisha.
Opposition BJD, which had announced the Odisha Semiconductor Manufacturing and Fabless Policy 2023, said: "While other states were only announcing semiconductor units in 2024, the decision by the Union Cabinet to approve two such units in Odisha today is truly commendable." BJD senior vice-president Debi Prasad Mishra at a press conference here, expressed confidence that the state government will take proactive steps to develop the required supporting ecosystem for these units within the stipulated timeline.Earlier in the day, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved four more semiconductor projects under India Semiconductor Mission (ISM), two of which will come to Odisha and one each for Punjab and Andhra Pradesh.
After the Union Cabinet meeting, Vaishnaw said that a silicon carbide semiconductor plant will be set up in Bhubaneswar with an investment of Rs 2,066 crore by SiCsem.
"Silicon carbide is a very robust material and can sustain at high temperatures. Silicon carbide is used in our missiles, satellites, telecom towers, rockets, railway engines, etc," Vaishnaw said. The minister said that the plant will have a capacity to produce 9.6 crore chips per year.The Cabinet also approved US chip major Intel-backed 3D Glass semiconductor manufacturing unit in Odisha with an investment of Rs 1,943 crore. The plant will be set up by Heterogenous Integration Packaging Solutions Pvt Ltd with an annual production capacity of 5 crore units."I sincerely express my gratitude to Hon'ble Prime Minister Shri @narendramodi ji and Hon'ble Union Minister Shri @AshwiniVaishnaw ji for the Central Cabinet's approval of the establishment of two semiconductor manufacturing units in Odisha," Majhi said in a post on X.The chief minister said the recent amendment of the Odisha Semiconductor Manufacturing and Fabless Policy, aimed at enhancing investment viability, competitiveness, and sustainability, together with this significant Cabinet approval, marks a major milestone in the state's industrial and technological advancement."This collaborative effort will accelerate innovation, generate employment, and strengthen Odisha's position as a vital contributor towards the vision of #AtmanirbharBharat. I look forward to continued partnership between the state and Central governments to further this strategic initiative for the comprehensive development of Odisha and the nation. #doubleengine," Majhi said.SicSem Private Limited is collaborating with Clas-SiC Wafer Fab Ltd, UK, to establish an integrated facility of Silicon Carbide (SiC) based Compound Semiconductors in Info Valley, Bhubaneshwar, Odisha.This project proposes to manufacture Silicon Carbide devices. This compound semiconductor fab will have an annual capacity of 60,000 wafers and packaging capacity of 96 million units. The proposed products will have applications in missiles, defence equipment, electric vehicles (EVs), railway, fast chargers, data centre racks, consumer appliances, and solar power inverters, an official statement said.3D Glass Solutions Inc (3DGS) will be setting up a vertically integrated advanced packaging and embedded glass substrate unit in Info Valley, Bhubaneshwar, Odisha. This unit will bring the world's most advanced packaging technology to India. Advanced packaging brings the next generation of efficiency to semiconductor industry, the statement said.The facility will have a large variety of advanced technologies, including glass interposers with passives and silicon bridges, and 3D Heterogeneous Integration (3DHI) modules.Planned capacity of this unit will be approximately 69,600 glass panel substrates, 50 million assembled units, and 13,200 3DHI modules per annum. The proposed products will have significant applications in defence, high-performance computing, artificial intelligence, RF and automotive, photonics and co-packaged optics and others.BJD leader Mishra said the process of setting up semiconductor units in Odisha was initiated under the leadership of former Chief Minister Naveen Patnaik during the BJD government. "The recent decision by the Union Cabinet to establish two semiconductor units in Odisha is rooted in the initiatives undertaken during the BJD regime," he claimed.Mishra said that investors interested in establishing a semiconductor industry in the state was cultivated during the 2nd edition of the Make in Odisha conclave held in December 2022, where several proposals were received. Accordingly, a dedicated policy for the semiconductor sector and its supporting ecosystem was formulated in 2023, he said.
The BJD leader said that discussions were held with multiple international investors to attract investment in this sector, and efforts began to establish the necessary ecosystem to develop Odisha as a cutting-edge electronics manufacturing hub. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. As 50% US tariff looms, 6 key steps that can safeguard Indian economy
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