New Delhi/Bhubaneswar, August 12 – In a historic decision under the Eastern India Mission, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the setting up of two major semiconductor manufacturing units in Odisha with an investment of ₹2,250 crore. The move has been hailed by Union Education Minister Dharmendra Pradhan as a turning point for Odisha’s entry into the New Age Economy.
Pradhan expressed gratitude to Prime Minister Narendra Modi, Odisha Chief Minister Mohan Charan Majhi, Union Minister for Railways, Electronics & IT Ashwini Vaishnaw, and Odisha Electronics & IT Minister Mukesh Mahaling for their combined efforts in bringing the project to the state.
- Bhubaneswar will host a Compound Semiconductor Fab and ATMP Unit to manufacture silicon carbide semiconductors, crucial for missiles, space technology, satellites, telecom towers, and railway engines. The R&D lab will be set up at IIT Bhubaneswar, integrating education and industry.
- Khordha Info Valley will get a 3D Glass Unit for producing high-quality glass panels used in defence, radar, aerospace, and wireless technology.
- Funding Structure:
- Central Government – 50%
- Odisha Government – 25%
- Private Investors – 25%
The Centre will provide ₹700 crore for the Bhubaneswar unit and ₹800 crore for the Khordha unit, with the Odisha government contributing ₹350 crore and ₹400 crore, respectively. The state will also provide land, water, electricity, and other infrastructure.
A Boost for Odisha’s Economy
Pradhan highlighted that while Odisha has long been known for coal, minerals, and heavy industries, the double-engine government has now brought the state into the high-tech semiconductor industry. He said this will reduce import dependency, strengthen the domestic electronics manufacturing ecosystem, and position Odisha as a hub for semiconductor-related industries.
The two units are expected to create 1,500 direct jobs and thousands of indirect jobs while significantly boosting ancillary industries in the sector. Commercial production is expected to begin within two years.
“This decision marks a new chapter for Odisha and is a major leap towards creating a world-class semiconductor cluster in Eastern India,” Pradhan said.
