Odisha unveils 870-acre Silicon Valley at Naraj, secures ₹23,600 crore semiconductor proposals, approves ₹452 crore power electronics hub at IIT Bhubaneswar.
A semiconductor cluster for eastern India
Odisha has announced plans to develop an 870-acre ‘Odisha Silicon Valley’ at Naraj near Cuttack and has received semiconductor and electronics investment proposals worth approximately ₹23,600 crore during SEMICON India 2026, Chief Minister Mohan Charan Majhi said in New Delhi. The proposals have the potential to generate around 6,100 jobs, according to a statement from the Odisha government.
The proposed technology cluster at Naraj is expected to house major electronics and information technology projects. By anchoring these investments in a dedicated zone, the state aims to create a cohesive ecosystem rather than isolated plants.
Strategic location and infrastructure advantages
The proposed Odisha Silicon Valley will be located at Naraj, which connects to the Cuttack-Bhubaneswar urban corridor, national highways and the ports of Paradip and Dhamra. Its proximity to the Mahanadi River could also help meet the substantial water requirements of semiconductor fabrication and assembly facilities, the government said.
Access to ports supports import of equipment and materials and export of finished chips. Road and rail connectivity eases movement of goods and talent across eastern India. Reliable power and water supply remain critical, and the site’s location seeks to address these needs.
QuadQuantum LoI for silicon carbide wafers
The state also signed a letter of intent with QuadQuantum for a facility to manufacture silicon carbide substrate wafers. Odisha did not disclose the proposed investment, capacity or timeline for the project. Silicon carbide wafers serve as the foundation for power devices used in electric vehicles, renewable energy and industrial drives.
This LoI complements other state approvals in silicon carbide devices and packaging. Together, they position Odisha as a hub for wide-bandgap semiconductors, which offer higher efficiency and thermal performance than traditional silicon.
₹452-crore power electronics hub at IIT Bhubaneswar
Separately, the state has approved a ₹452-crore National Industry Co-Development Hub on Integrated Power Electronics at IIT Bhubaneswar. The project will be developed under the Indian Design, Semiconductors, Packaging and Systems programme and jointly funded by the Ministry of Electronics and Information Technology, the Odisha government, the Anusandhan National Research Foundation, and industry partners.
According to Majhi, the programme will set up industry-led centres of excellence aimed at taking research and innovation closer to commercial use. The hub will focus on power devices, converters, motor drives and related systems for EVs, data centres and renewables.
Five approved projects worth ₹10,899 crore
Odisha has so far approved five semiconductor manufacturing projects with a cumulative investment of ₹10,899 crore. The projects are expected to generate more than 4,500 direct jobs and over 16,000 indirect jobs. They cover silicon carbide semiconductors, advanced packaging, glass-substrate packaging, memory module assembly and power electronics.
Two of the projects have been approved under the India Semiconductor Mission. SiCSem, an integrated device manufacturer, is setting up a silicon carbide semiconductor fab with packaging facilities, while Heterogeneous Integration Packaging Solutions, or HIPS/3DGS, is setting up an advanced glass-substrate packaging facility.
The latter is aimed at applications in areas such as artificial intelligence, high-performance computing and advanced processors. Other investments include RIR Power Electronics for silicon carbide power devices, Sancode Technologies for advanced packaging, and ASP Semicon for memory module OSAT operations.
Progress on the ground
Majhi said RIR Power Electronics has completed the erection and installation of silicon carbide epitaxial wafer manufacturing reactors at its Bhubaneswar facility and is expected to begin commercial production soon. This milestone signals that Odisha’s semiconductor push is moving from announcements to tangible capacity.
As these plants ramp up, they will create demand for skilled technicians, engineers and support services. Local universities and ITIs can align curricula to feed this pipeline.
More projects in discussion
Odisha is also in talks for additional semiconductor investments. The state is working to convert an Intel-3DGS memorandum of understanding into an investment in advanced glass substrates and packaging. Sancode is in discussions for a second-phase advanced packaging facility.
SiCSem is exploring a second phase involving a combined silicon carbide and gallium nitride fab and packaging facility, while QuadQuantum has signed an LoI with the state for a silicon carbide substrate wafer manufacturing facility. These discussions point to potential clustering of related units.
Incentives: up to 25% capex support for ISM projects
Majhi also highlighted Odisha’s semiconductor incentives. The state will provide additional fiscal support of up to 25% of eligible capital expenditure for projects approved under the India Semiconductor Mission. The support also covers semiconductor equipment manufacturing, semiconductor-grade chemicals, gases, materials and other parts of the supply chain.
The state’s investment presentation also lists 30% capex support for certain non-ISM fabs and ATMP/OSAT projects and 10% for non-ISM raw material supply-chain projects. Odisha’s semiconductor policy now covers design, equipment, raw materials, chemicals and gases, fabrication, ATMP/OSAT and research and development.
Workforce, patents and R&D support
The policy also provides support for relocating engineers, training workers, offering internships, securing international patents and conducting research and development, the state government said. These measures reduce setup friction and encourage long-term commitment from companies.
By funding training and internships, the state can build a local talent pool. Patent support helps firms protect innovations and attract further investment.
Building clusters, not standalone plants
Majhi said the state was aiming to create semiconductor clusters rather than bring in standalone projects. “A facility of this kind pulls an entire supply chain behind it,” he said. Clustering reduces logistics costs, enables shared utilities and fosters knowledge spillovers.
Over time, Odisha can develop specialised zones for wafers, packaging, equipment, materials and design. This approach mirrors successful global hubs where proximity accelerates innovation and scale.
Looking ahead
With the Naraj Silicon Valley, the IIT Bhubaneswar power electronics hub and a growing portfolio of approved and proposed projects, Odisha is assembling the pieces of a credible semiconductor ecosystem. Execution will determine outcomes: land acquisition, clearances, power and water infrastructure, and skilled labour.
If the state delivers on these enablers, eastern India can emerge as a significant node in India’s semiconductor map, supporting EVs, renewables, AI and strategic electronics.
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