The state of Odisha is gearing up to revolutionize the semiconductor industry with its latest move. On July 21, the Odisha Cabinet approved the Odisha Semiconductor Manufacturing & Fabless Policy, a visionary step to attract investors and foster semiconductor and electronic chip manufacturing within the state.
The Vision: An End-to-End Semiconductor Ecosystem
Odisha envisions becoming a leading hub for semiconductor design and manufacturing. With this policy in place, the state aims to establish at least one semiconductor manufacturing unit and encourage the establishment of 100 fabless design companies in Odisha. This ambitious endeavor is expected to create 5,000 direct job opportunities and an impressive 20,000 indirect employments during the policy’s seven-year span.
India’s Pursuit of Semiconductor Ecosystem
India has long been pursuing the goal of developing a robust semiconductor ecosystem, including chip manufacturing, within its borders. As part of this national effort, states are actively introducing semiconductor policies to attract investments and bolster the tech industry.
A Glimpse into Odisha’s Policy
The Odisha Semiconductor Manufacturing & Fabless Policy aims to attract investors and provide them with the necessary resources to venture into the semiconductor and electronic chip manufacturing sectors in the state. This policy opens doors to cutting-edge technologies and knowledge transfer, which will enable the growth of a self-sustaining semiconductor ecosystem.
UK-Based Company’s Investment
Odisha’s semiconductor ambitions got a significant boost with the announcement that a UK-based company is planning to set up a semiconductor fabrication unit in Ganjam district. An investment of Rs 30,000 crore is expected in the first phase of the project itself. SRAM and MRAM Technologies & Projects India Pvt Ltd, an Indian arm of UK-based SRAM and MRAM Group, on March 26 signed a memorandum of understanding (MoU) with the state government, marking a significant milestone in Odisha’s journey towards becoming a semiconductor manufacturing powerhouse.
Pioneering States in Semiconductor Policy
Gujarat was the pioneer among Indian states to introduce semiconductor policy. The state has already secured investment commitments from Anil Agarwal’s Vedanta for semiconductor fabrication and display fabrication units. Additionally, American chip maker Micron has also expressed interest in setting up a test and packaging plant in Gujarat. Micron will benefit from substantial incentives, with 50 per cent of the project cost from the central government and an additional 20 per cent from the state. Micron will invest $825 million for the $2.75 billion plant. Now, Odisha is also following suit and has become the third Indian state to launch its semiconductor policy.
Semicon India 2023: A Catalyst for Growth
As India moves towards building a strong semiconductor ecosystem, the country is all set to host the second edition of Semicon India 2023. The prestigious conference to be held in Gandhinagar, Gujarat from July 28-30, 2023 will witness the presence of global leaders from the semiconductor industry. The objective of the conference is to attract investments and promote the development of India’s semiconductor ecosystem. Additionally, 40 nm semiconductor plants and compound fabs are expected to get approval from the Ministry of Electronics and IT. Several Memorandum of Understandings (MoUs) are also expected to be signed during the event, which will further boost India’s semiconductor efforts.
In Conclusion
Odisha’s bold step to approve the Semiconductor Manufacturing & Fabless Policy marks a turning point for India’s tech industry. With ambitious plans to become a prominent semiconductor hub, the state is poised to attract significant investments, create job opportunities, and contribute to the nation’s technological prowess. As India’s semiconductor ecosystem continues to flourish, Semicon India 2023 promises to be a critical event in propelling the country’s tech industry towards a brighter and more prosperous future.
