Bhubaneswar, Oct 30: Odisha is stepping up efforts to establish itself as a major semiconductor and advanced electronics manufacturing destination, with five projects involving proposed investments of more than USD 4 billion in the pipeline as the state seeks to diversify its industrial base and strengthen India’s domestic chip manufacturing capabilities.
The proposed investments cover semiconductor fabrication, advanced chip packaging and other technology related activities, marking a significant shift for a state traditionally associated with mining, metals and mineral based industries.
Speaking at the inauguration of TiECon Bhubaneswar 2026 on Friday, Vishal Kumar Dev, Additional Chief Secretary of the Electronics and Information Technology Department, said Odisha was making progress in developing semiconductor manufacturing facilities and attracting global technology companies.
He said two of the 12 projects approved under the India Semiconductor Mission were coming up in Odisha, including the country’s first compound semiconductor fabrication facility and its first advanced 3D chip packaging unit.
Both projects have moved into the construction phase, with groundwork initiated within six to eight months of receiving approval.
The state government sees the projects as an opportunity to move beyond conventional industrial activities and establish a technology-driven manufacturing ecosystem capable of attracting international investment.
Semiconductor manufacturing gains momentum
Semiconductors are essential components used in electronic devices, automobiles, telecommunications equipment, computers, defence systems and industrial machinery.
Their importance has increased considerably with the expansion of artificial intelligence, electric vehicles, data centres and advanced communication technologies.
India has been seeking to reduce its dependence on imported semiconductor components by encouraging domestic manufacturing, attracting international technology companies and developing specialised industrial infrastructure.
Odisha is positioning itself to participate in this transformation through investments in chip fabrication, advanced packaging and semiconductor-related technologies.
The state’s semiconductor strategy includes developing manufacturing facilities, encouraging partnerships with international companies and building a supporting network of suppliers and research institutions.
Dev said advanced chip packaging was emerging as an important area in which Odisha could establish a competitive advantage.
He specifically highlighted glass-core technology and the state’s collaboration with companies such as Intel and 3D Glass Solutions.
Advanced packaging allows multiple semiconductor components to be integrated into sophisticated systems, improving performance, energy efficiency and processing capabilities.
Such technologies are increasingly important for applications involving artificial intelligence, high-performance computing, telecommunications and defence electronics.
Five projects form the investment pipeline
The five semiconductor projects represent a significant expansion of Odisha’s industrial ambitions.
Among the important developments are facilities being established by SiCSem Private Limited and 3D Glass Solutions, along with other projects involving semiconductor manufacturing, memory modules and outsourced assembly and testing.
SiCSem is developing a silicon carbide semiconductor fabrication and integrated packaging facility at Info Valley-II in Khordha district.
The project has an estimated investment of approximately Rs 3,406 crore and is intended to manufacture silicon carbide-based semiconductor devices, including diodes and MOSFETs.
Silicon carbide semiconductors are increasingly used in electric vehicles, renewable energy systems, industrial power equipment and other applications requiring efficient power management.
Another major project is being developed by 3D Glass Solutions through its Indian subsidiary, Heterogeneous Integration Packaging Solutions.
The facility at Info Valley in Bhubaneswar is focused on advanced 3D chip packaging and embedded glass substrate technology.
The project involves an investment of approximately Rs 1,944 crore and is expected to manufacture advanced semiconductor packaging products for sectors including artificial intelligence, data centres, aerospace and defence.
The remaining projects include a semiconductor memory chip manufacturing facility by ASP Semicon and an outsourced semiconductor assembly and testing unit proposed by Sancode Semi.
ASP Semicon has proposed an investment of around Rs 4,620 crore for its manufacturing facility in Khordha, while Sancode Semi’s project involves an investment of approximately Rs 1,650 crore.
These facilities are expected to strengthen different stages of the semiconductor value chain and provide opportunities for supporting industries.
Global partnerships and technology collaboration
Odisha is also seeking to attract international companies through partnerships and investment agreements.
The collaboration between Intel and 3D Glass Solutions is among the important developments supporting the state’s advanced semiconductor ambitions.
The partnership envisages investment of approximately USD 3.3 billion and is expected to create more than 1,800 direct employment opportunities.
The collaboration is focused on advanced packaging technologies that could support the development of next-generation semiconductor products.
International partnerships are considered important because semiconductor manufacturing requires specialised machinery, technical expertise, intellectual property and highly skilled personnel.
Odisha has been engaging with companies from several countries, including Japan and Sweden, to explore additional investment opportunities.
The state has also held discussions with major global semiconductor equipment and technology companies, including Lam Research, Applied Materials and other industry participants.
Such engagements could help develop a wider industrial network covering manufacturing equipment, semiconductor-grade chemicals, gases, materials and specialised engineering services.
The state government believes that attracting companies across different segments will help establish a more integrated manufacturing ecosystem rather than relying exclusively on a few large facilities.
Odisha Silicon Valley to support expansion
Infrastructure development is another important component of the state’s semiconductor strategy.
Odisha has identified approximately 870 acres of land at Naraj near Cuttack for the proposed Odisha Silicon Valley.
The planned technology hub is intended to bring semiconductor, electronics and information technology projects together in an integrated industrial location.
The development is expected to provide infrastructure for manufacturing facilities, technology companies, research institutions and other supporting businesses.
The availability of industrial land, electricity, water and transport connectivity has been highlighted by the state government as an advantage in attracting technology investments.
Electronics and IT Minister Mukesh Mahaling said Odisha possessed several natural and infrastructural advantages that could help it emerge as an important destination for semiconductor manufacturing.
He emphasised the state’s ambition to move from a mineral-based industrial economy towards high-value manufacturing and technology-driven activities.
The vision of moving from mines to microchips reflects the government’s intention to use existing industrial capabilities and natural resources to support advanced manufacturing.
AI infrastructure receives greater attention
Alongside semiconductor manufacturing, Odisha is also developing its artificial intelligence ecosystem.
The state has announced an Odisha AI Mission and is working towards establishing a sovereign AI hub.
The initiative is intended to strengthen local capabilities in artificial intelligence research, computing infrastructure and technology deployment.
Dev said the state wanted to ensure that AI technologies were developed and deployed within Odisha, supporting local industries and public services.
The development of AI infrastructure is closely connected with the semiconductor sector because advanced computing systems require specialised chips and high-performance processors.
The expansion of data centres and AI computing facilities could therefore create additional demand for semiconductor components and related electronic products.
Odisha’s strategy is to develop complementary capabilities across semiconductor manufacturing, computing infrastructure and digital technology services.
This approach could also encourage companies operating in software development, cloud computing and global capability centres to establish operations in the state.
Employment and opportunities for supporting industries
The semiconductor projects are expected to generate employment opportunities across manufacturing, engineering, research and technical services.
The industry requires specialised workers in areas such as electronics engineering, materials science, chip design, equipment maintenance and quality control.
The development of manufacturing facilities could also create indirect employment through logistics, construction, industrial services and component supply networks.
Local educational institutions and technical training centres will have an important role in preparing workers for these requirements.
The state government has emphasised the need to strengthen cooperation between industry and research institutions to develop an appropriately skilled workforce.
For local businesses, the expanding semiconductor ecosystem could create opportunities in industrial infrastructure, equipment supply, specialised materials and engineering services.
However, establishing a competitive semiconductor industry will require sustained investment in technical education, research facilities and reliable infrastructure.
Entrepreneurship and industrial diversification
The semiconductor push is also being linked to Odisha’s broader efforts to encourage entrepreneurship and private investment.
Speaking at TiECon Bhubaneswar 2026, Additional Chief Secretary of the Industries Department Hemant Sharma said entrepreneurship would play an important role in transforming the state’s economy.
He highlighted the importance of industrial expansion, investment and business development in maintaining higher economic growth.
Sharma said that if Odisha sustained annual economic growth of 7-8 per cent, its economy could double in approximately seven years, while growth of around 9 per cent could achieve the same objective in about five years.
Industry representatives also stressed the importance of manufacturing scale, efficient logistics and global technology partnerships.
The TiECon event provided a platform for entrepreneurs, investors and industry leaders to discuss opportunities for business expansion and innovation.
The launch of TiE Bhubaneswar Academy and TiE Bhubaneswar HNI Connect during the event was aimed at strengthening entrepreneurship development, mentoring and investment networks.
These initiatives are expected to support emerging businesses and improve access to industry expertise and financial resources.
Challenges in building a semiconductor ecosystem
Despite the investment momentum, establishing a globally competitive semiconductor industry will involve several challenges.
Chip manufacturing requires substantial capital expenditure, advanced technology, reliable power supplies and highly specialised production infrastructure.
Companies also need access to international suppliers, skilled engineers and established customers to ensure that manufacturing facilities operate efficiently.
Semiconductor projects typically require long development periods before reaching commercial production.
Consequently, the success of Odisha’s investment plans will depend not only on project announcements but also on timely construction, technology integration and the establishment of commercial operations.
The availability of a supporting supply chain will also be essential to reduce manufacturing costs and improve competitiveness.
International competition is another important consideration, as several countries and regions are offering financial incentives to attract semiconductor manufacturers.
Odisha will therefore need to ensure that its policy support is accompanied by reliable infrastructure, efficient administration and long-term industry partnerships.
State seeks a stronger position in India’s technology economy
The proposed investments of more than USD 4 billion underline Odisha’s growing ambitions in the semiconductor and advanced electronics sectors.
By combining chip fabrication, advanced packaging, AI infrastructure and technology partnerships, the state is attempting to establish a broader industrial ecosystem.
The projects could also strengthen India’s efforts to develop domestic semiconductor manufacturing capabilities and reduce dependence on international supply chains.
For Odisha, the transition offers an opportunity to diversify its economy, attract high-value investments and create specialised employment.
While the long-term impact will depend on the successful execution of the proposed projects, the state’s expanding engagement with domestic and international technology companies signals a growing commitment to advanced manufacturing.
The coming years will be crucial in determining whether Odisha can translate its investment pipeline into a sustainable semiconductor industry with a significant presence in global electronics supply chains.