Odisha Plans 870-Acre ‘Silicon Valley’ To Attract Semiconductor Companies

Odisha has announced plans to develop an 870-acre “Odisha Silicon Valley” at Naraj near Cuttack as the state looks to attract semiconductor, electronics and information technology companies and build a broader technology manufacturing ecosystem.

Chief Minister Mohan Charan Majhi announced the proposed hub during SEMICON India 2026 in New Delhi on September 18. The site is located along the Cuttack-Bhubaneswar urban corridor and has access to major ports including Paradip and Dhamra, national highways and the Mahanadi. Thestate government is positioning the location as a potential hub for semiconductor manufacturing, supply chains, logistics and allied industries, with proximity to the river cited as an advantage for industries requiring large quantities of water.

The announcement comes as Odisha expands its semiconductor investment push. The state said it received investment proposals worth around ₹23,600 crore, with the potential to generate about 6,100 jobs, during its engagements at SEMICON India 2026. Discussions involved companies and industry representatives from countries including Japan, Sweden and Taiwan, with Lam Research, Applied Materials, SiCSem, 3D Glass Solutions, Cyient, Linde and HORIBA India among the companies engaged by the state. The ₹23,600-crore figure represents proposals discussed during the event and should not be treated as committed investment.

Odisha has separately approved 5 semiconductor projects involving around ₹10,899 crore, which are expected to generate more than 4,500 direct jobs and over 16,000 indirect employment opportunities. The projects cover areas including silicon carbide semiconductors, advanced packaging, glass-substrate packaging, memory-module assembly and power electronics.

Two of these projects have been approved under the India Semiconductor Mission (ISM). SiCSem is developing a silicon carbide semiconductor fabrication and integrated packaging facility, while Heterogeneous Integration Packaging Solutions (HIPS), promoted by 3D Glass Solutions, is developing an advanced glass-substrate packaging facility at Info Valley in Khordha. The foundation stone for the 3DGS facility was laid in April 2026. The project has an approved investment of about
₹1,943.53 crore and is expected to produce glass panels, assembled semiconductor units and advanced 3D heterogeneous-integration modules.

Other projects in Odisha’s semiconductor ecosystem include RIR Power Electronics, Sancode Semi and ASP Semicon. RIR Power Electronics is developing a silicon carbide power semiconductor facility near Bhubaneswar. The company has completed installation of key SiC epitaxial wafer manufacturing reactors, with commercial production expected to begin soon, subject to remaining regulatory processes.

Odisha is also pursuing additional projects beyond those already approved. The state is working with SiCSem on a possible Phase-II project involving silicon carbide and gallium nitride fabrication and packaging. Discussions are also underway with Sancode Semi for a second-phase advanced packaging facility. QuadQuantum has signed a Letter of Intent with the Odisha government for a proposed facility to manufacture silicon carbide substrate wafers.

Another major proposal linked to Odisha is a $3.3 billion MoU involving Intel and 3D Glass Solutions for an advanced packaging glass-core substrate manufacturing facility in the Bhubaneswar-Khurda region. The agreement was signed in May 2026 and envisages implementation in phases over five to six years, with the potential to create more than 1,800 high-skilled direct jobs. The project remains at the MoU stage, with the Odisha government working to translate it into a large-scale investment.

The state has also approved a ₹452-crore National Industry Co-Development Hub on Integrated Power Electronics in collaboration with IIT Bhubaneswar. The initiative is expected to be funded by the Centre, the Odisha government and the research ecosystem, with Odisha contributing ₹125 crore. The programme is intended to support multiple centres of excellence, industry participation and the commercialisation of research in power electronics.

To improve the investment proposition for semiconductor companies, Odisha has amended its semiconductor policy to provide additional fiscal support of 25% of eligible capital expenditure for projects approved under the India Semiconductor Mission. The expanded support covers areas beyond semiconductor manufacturing, including semiconductor equipment, semiconductor-grade chemicals and gases, raw materials and other supply-chain components. The policy also provides
support related to engineer relocation, workforce training, internships, international patents and research and development.

Workforce development is another part of the state’s strategy. Odisha is developing specialised programmes at the World Skill Center in Bhubaneswar and upgrading selected ITIs into Institutes of National Excellence with modern laboratories and training infrastructure. The state government has said its focus is on building skill-based employability for sectors including semiconductors, artificial intelligence and data centres rather than relying on local hiring quotas.

Odisha’s broader semiconductor investment pipeline is currently estimated by the state at around $4.7 billion, including approximately $1.2 billion described as already committed and another $3.5 billion in upcoming investments. The state is also developing a third IT park spread across about 1,000 acres as part of its wider technology infrastructure plans.

The proposed Naraj hub is intended to complement the existing projects around Bhubaneswar and Khordha by bringing semiconductor manufacturing, electronics, IT, supply-chain and allied activities into a larger industrial cluster. The state has described the broader strategy as a move from its traditional “mine economy” toward a “mind economy,” reflecting its focus on technology, skills and higher-value manufacturing.