Odisha’s semiconductor push is no longer a policy pitch. In the past 12 months, the state has translated incentive packages and MoUs into an actual production line, a working research lab, and $3.3 billion in foreign investment. Here’s how each piece fits together and why Odisha’s semiconductor cluster is worth a closer look now.
RIR Power Electronics to set up a semiconductor manufacturing unit in Odisha
RIR Power Electronics is a big part of Odisha’s semiconductor manufacturing story. The Odisha cabinet okayed a customised incentive package for RIR’s Silicon Carbide (SiC) facility in January 2025. After RIR looked for other states for the ₹618.60 crore project, officials raised the incentive from 30 per cent to 50 per cent.
Since then, the state’s Electronics & Information Technology Department has released capital subsidies in phases. The first phase of the project had an allocation of around ₹65 crore, and a further ₹32 crore was approved. RIR’s first target was to produce epitaxy wafers by December 2025. The company now expects to begin wafer epitaxy production in Q2 FY27 following completion of the installation of its cleanroom and equipment.
That longer time frame matters. This is the clearest signal of how quickly Odisha’s semiconductor ambitions are turning into real output. “Once RIR’s plant is operational, it will manufacture SiC MOSFETs, IGBTs, and power diodes in the voltage range of 3.3 kV to 20 kV. Those parts go into EV, grid, defence and rail applications, a smart bet in a higher-margin, lower-competition niche that most states are not yet chasing.
Intel, 3DGS Make $3.3 Billion Wager on Info Valley
RIR anchors Odisha’s manufacturing side. The bigger story comes from Intel and 3D Glass Solutions (3DGS). Odisha has signed an MoU with both companies for an advanced semiconductor substrate facility, valued at an estimated $3.3 billion, which is among the biggest high-tech investments in India.
This facility is an extension of work that is already underway at Info Valley, Bhubaneswar, where the state had established the basis for the first 3D chip packaging unit in India. The officials expect commercial production to begin by August 2028 and full-fledged operations by 2030, with an investment of about ₹2,000 crore.
The chief minister of Odisha made a big statement at the groundbreaking, and it still rings true today. Odisha is the only state in India to host both the country’s first compound semiconductor fabrication unit and its first 3D glass substrate packaging facility.
Semiconductor Talent Pipeline at IIT Bhubaneswar
A semiconductor cluster requires people, not just plants. Odisha has that talent pipeline through IIT Bhubaneswar. The institute is already running the Silicon Carbide Research and Innovation Centre, which SicSem had seeded with an investment of ₹64 crore.
The institute secured another win when Union IT Minister Ashwini Vaishnaw approved the NaMo Semiconductor Laboratory. This is a ₹4.95 crore facility funded by the MPLAD scheme. IIT Bhubaneswar also signs industry MoUs. It recently tied up with Banashree Semiconductors for a five-year pact covering chip design research and industry training and has an active collaboration with IIT (ISM) Dhanbad for joint semiconductor research.
These are the highlights of a claim made by Odisha’s E&IT minister at IIT Bhubaneswar’s Foundation Day that the institute is on the way to becoming a real “Power Semiconductor Hub” of the state.
Odisha’s Semiconductor Policy Sets the Stage
None of this was an accident. Odisha had come out with its Semiconductor Manufacturing and Fabless Policy in 2023, and that policy had established the basis for all the above. In addition to the Centre’s 50 per cent incentive, silicon, compound, display, and ATMP projects are eligible for 25 per cent incentives.
The policy also gives a 20 per cent incentive for fabless products and IP companies, which is a first in the country. This aggressive structure allowed Odisha to outcompete Gujarat and Uttar Pradesh on paper before it even built a single plant. It’s also the actual mechanism behind RIR’s sweetened deal and the Intel-3DGS pitch.
Odisha’s Semiconductor Cluster: The Way Forward
The biggest challenge for Odisha is still the gap between announcement and actual output. RIR’s wafer production schedule is already some six months behind. Intel-3DGS will not go into commercial production until 2028 at the earliest.
The real test is still ahead. Can the state transform these manufacturing anchors into a fabless design ecosystem? Can it build a homegrown talent pipeline before the next round of funding? Those two questions will decide whether Odisha becomes India’s real semiconductor hub or just its most ambitious pitch.
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