Odisha unveils Silicon Valley, gets ₹23,600 cr semiconductor proposals

The proposed 870-acre Silicon Valley at Naraj will serve as a dedicated semiconductor, electronics and IT hub as Odisha seeks to build an integrated ecosystem

The state government unveiled "Odisha Silicon Valley" during SEMICON India 2026 in New Delhi on Friday. The valley at Naraj in Cuttack district will be developed as a dedicated destination for major semiconductor, electronics and information technology projects.

 

Chief Minister Mohan Charan Majhi, who led a series of high-level engagements with global and domestic semiconductor companies, industry bodies and international delegations, announced that the Silicon Valley will come up on an area of 870 acres.

 

The proposed Odisha Silicon Valley is expected to serve as the state's principal cluster for semiconductor, electronics and IT investments. Majhi said the location has strategic advantages due to its proximity to the Cuttack-Bhubaneswar urban corridor and connectivity with major national highways and ports, including Paradip and Dhamra.

 

 

The location is also being positioned as an important node for semiconductor supply chains and allied logistics. Semiconductor fabrication and assembly operations require assured supplies of water and power, and the site's proximity to the Mahanadi has been highlighted by the state government as an advantage for meeting industrial water requirements.

 

Officials said the state government is seeking to leverage these locational advantages to develop the Naraj area into a world-class semiconductor and electronics hub, with infrastructure designed to support companies through manufacturing, innovation and expansion.

 

The announcement comes as Odisha seeks to move beyond individual semiconductor projects and establish an integrated ecosystem covering manufacturing, materials, equipment, research, talent and allied supply-chain activities.

 

Odisha stepped up its semiconductor push, with the state receiving investment proposals worth around ₹23,600 crore with the potential to create 6,100 jobs during the New Delhi event.

 

The state government said the investment proposals received at SEMICON India 2026 marked a significant step towards developing a complete semiconductor value chain under the India Semiconductor Mission 2.0 framework.

 

During his engagements at SEMICON India, Majhi met delegations from Japan, Sweden and Taiwan and held discussions with companies including Lam Research, Applied Materials, SiCSem, 3D Glass Solutions, Cyient, Linde and HORIBA India, among others.

 

The chief minister said Odisha’s semiconductor journey is moving rapidly from intent to implementation. "We have been able to attract investments across critical areas of the semiconductor value chain and, importantly, move key projects towards execution. We want to build an ecosystem where global and Indian technology companies can manufacture, innovate and grow,” he said.

 

A Letter of Intent (LoI) was also signed with QuadQuantum for a facility to manufacture silicon carbide (SiC) substrate wafers. The proposed facility is expected to add another component to Odisha's emerging SiC and power semiconductor ecosystem.

 

The investment outreach at SEMICON India came against the backdrop of several semiconductor projects already being established in Odisha. The state's pavilion at the event showcased projects by RIR Power Electronics, SiCSem, 3D Glass Solutions and ARF Design, besides semiconductor-related work being undertaken by educational institutions, including NIT Rourkela and PMEC, Brahmapur.

 

The Odisha pavilion's central theme — “Sand to Silicon” — was an attempt to present Odisha's semiconductor journey through a distinctly local narrative, linking the state's mineral resources and industrial base with its ambitions in advanced technology. The government has also linked the initiative with its broader objective of transitioning from a “Mine Economy” to a “Mind Economy”.

 

Alongside attracting investments, Odisha has been widening its policy support for the semiconductor industry. The state has aligned its Semiconductor Policy with the evolving India Semiconductor Mission 2.0 and, through its latest third policy amendment, expanded incentives for segments that are critical to building a broader ecosystem.

 

Under the amended framework, ISM-approved projects in semiconductor equipment manufacturing, semiconductor-grade gases, raw materials and supply-chain segments are eligible for an additional 25 per cent fiscal support from the state. The policy also provides assistance in areas such as engineer relocation, manpower skilling, internships, international patents and research and development.

 

Mukesh Mahaling, minister for electronics and information technology, said the state government's expanded policy support is intended to address the ecosystem requirements of semiconductor companies rather than focusing only on fabrication or assembly facilities. “Our approach is to build the ecosystem around semiconductor investments, not look at projects in isolation,” he said.

 

Odisha has been an early mover in aligning its policy framework with ISM 2.0, while widening support to areas such as equipment, materials, gases and the supply chain. "Alongside this, we are investing in specialised talent and creating the conditions that companies need to set up and scale their operations in the state,” Mahaling added.