Odisha is looking to bring at least three more semiconductor packaging companies as it builds a broader chip manufacturing ecosystem under Semicon 2.0.
The goal is to shift towards packaging, testing, specialised materials and supporting industries rather than competing for large silicon fabrication plants.
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Odisha Targets the Mid-Sized Semiconductor Market
Hemant Sharma, Additional Chief Secretary for Industries and Home, said the state is targeting companies involved in outsourced semiconductor assembly and test (OSAT) and assembly, testing, marking and packaging (ATMP).
It is also looking to attract printed circuit board (PCB) makers and companies working with gallium nitride and silicon carbide.
Sharma said Odisha sees the Rs 100 crore to Rs 500 crore investment range as a potential sweet spot. The approach is intended to bring in several specialised manufacturers instead of relying on a few very large semiconductor projects.
“If we target a fab, we may not be successful, but if we target this mid-segment, the sweet spot is, let’s say, about Rs 100 crore to Rs 500 crore,” Hemant Sharma said.
The state believes these smaller and mid-sized companies can serve a large domestic market that remains heavily dependent on imports.
Six Projects Already Under Development
According to the Odisha government, six semiconductor projects with a combined investment of Rs 14,795 crore are currently being developed in the state.
The projects involve RIR Power Electronics, SiCSem, Silelectric Semiconductor Manufacturing, Heterogeneous Integration Packaging Solutions, Sancode Semi and ASP Semicon. RIR Power Electronics has already started operations, while the other projects are at different stages of construction and development.
The strategy also builds on Odisha’s existing semiconductor push. SiCSem is developing a silicon carbide compound semiconductor facility, while Heterogeneous Integration Packaging Solutions, promoted by US-based 3D Glass Solutions, is setting up India’s first advanced 3D glass substrate packaging facility in Bhubaneswar.
The latter project involves an investment of Rs 1,943.53 crore and is expected to begin commercial production by August 2028, with full-scale production targeted for August 2030.
Building the Supporting Chip Ecosystem
Odisha is also preparing common infrastructure for the industry, including a 250-acre semiconductor-focused special economic zone (SEZ), testing facilities and infrastructure for industrial gases and speciality chemicals.
The state has held discussions with suppliers including Linde, INOX and Air Liquide. The objective is to build sufficient manufacturing capacity first so that suppliers have a strong incentive to establish facilities nearby.
Odisha’s semiconductor strategy is becoming clearer: rather than chase the biggest fabs, it is trying to build the middle layer that makes a chip ecosystem work. If the next three OSAT and ATMP investments materialise, the state could emerge as an important back-end manufacturing and specialised semiconductor hub.
Samarjit Kaur is a journalist and communications professional covering technology & emerging digital trends. With a focus on clarity and context, she reports on developments shaping industries and governance. When not reporting, she chooses to plug-in and relax on her playlists and plan her next bucket-list trips!
