New Delhi: India with its full efforts is leaving no chance to establish a semiconductor ecosystem along with chip manufacturing within the nation. On July 21, the Odisha Cabinet waved the green flag for Odisha Semiconductor Manufacturing & Fabless policy to appeal to investors for entering into the manufacturing of Semiconductor/Electronic Chips in Odisha.

Through this policy, the state aims to remodel Odisha into a paramount of semiconductor design and manufacturing.

As the policy comes into effect, the Odisha government is upbeat about having at least one semiconductor manufacturing unit and 100 fabless design companies which are to be set up in the state.

Creating chances

It is anticipated for the semiconductor ecosystem in Odisha to generate nearly 5000 direct employees and 20,000 indirect employments throughout the policy period of 7 years.

#Odisha Cabinet led by CM @Naveen_Odisha approved Odisha Semiconductor Manufacturing & Fabless Policy. It will develop end-to-end semiconductor ecosystem, transform Odisha into a leading centre of semiconductor manufacturing & create a repository of semiconductor design talent.… pic.twitter.com/sakXn20NTk

— CMO Odisha (@CMO_Odisha) July 21, 2023

Such policy comes following news that a UK-based firm is laying the groundwork for a semiconductor fabrication unit in Odisha’s Ganjam district. In addition to it, it is estimated to invest Rs 30,000 crore in the first phase.

Earlier on March 26, SRAM and MRAM Technologies and Projects India Pvt Limited, which is the Indian unit of UK-based SRAM and MRAM Group inked a Memorandum of Understanding (MoU) with the state government for the establishment of the semiconductor unit within the state.

Semiconductor Infrastructure

As India plans on setting up a sound semiconductor ecosystem, it first began its journey from Gujrat. The home state of Mahatma Gandhi was the first state to introduce a semiconductor policy and has investment commitments from Anil Agrawal-led Vedanta along with US chip maker Micron.

The US-based chip-making company will get a 50 per cent incentive for the project cost from the Central government and 20 per cent from the Gujarat government.

Gujarat’s semiconductor plan amounting to $2.75 billion will get funding worth $825 million from Micron.

At present, Odisha has become the third Indian state to introduce a semiconductor policy.