FSEZ clears ₹3,406 crore SiCSem semiconductor unit near Bhubaneswar

The integrated facility at Info Valley-II will manufacture SiC diodes and MOSFETs, with projected five-year exports of ₹7,043 crore and employment for around 1,270 people

Odisha is set to get an integrated semiconductor manufacturing unit after the Unit Approval Committee (UAC) of the Falta Special Economic Zone (FSEZ) under the Ministry of Commerce and Industry approved SiCSem Private Limited’s proposal to establish a silicon carbide (SiC) semiconductor facility with an investment of ₹3,406.25 crore at Info Valley-II on the outskirts of Bhubaneswar.

 

The project, which was among the two semiconductor proposals approved for Odisha under the India Semiconductor Mission (ISM) last year, will come up on 21.889 acres at the Electronic System Design and Manufacturing (ESDM) Park in Info Valley-II.

 

Sources said the UAC approval clears the way for SiCSem to establish an integrated semiconductor manufacturing facility covering fabrication, assembly, testing, marking and packaging of SiC semiconductor devices.

  

The proposed unit will manufacture SiC diodes and SiC metal-oxide-semiconductor field-effect transistors (MOSFETs), which are increasingly used in applications requiring high power efficiency, high-temperature performance and faster switching.

 

According to the project proposal reviewed by Business Standard, the facility is proposed to have an annual production capacity of 4.8 million SiC diodes and 91.2 million SiC MOSFETs.

 

The scale of production is expected to strengthen domestic manufacturing capabilities in a strategically important semiconductor segment and reduce dependence on overseas supply chains for specialised power semiconductor devices.

 

“SiCSem is projected to generate export turnover of around ₹7,043 crore over the first five years of operations, with net foreign exchange earnings estimated at around ₹4,523 crore during the same period,” read the minutes of the 217th meeting of the UAC held on August 29.

 

The unit is expected to generate employment for around 1,270 people, adding to the high-skilled workforce being created around Odisha’s emerging semiconductor and electronics manufacturing clusters.

 

The SiC facility is part of a broader strategy by SiCSem to develop an integrated semiconductor manufacturing capability in Odisha rather than limiting its operations to a single stage of the value chain.

 

The company’s proposed operations encompass manufacturing and fabrication as well as downstream assembly, testing, marking and packaging of semiconductor devices.

 

SiCSem has also established a dedicated research and development centre, the Silicon Carbide Research and Innovation Centre (SICRIC), at IIT Bhubaneswar with an investment of ₹64 crore.

 

The centre will strengthen indigenous research and innovation capabilities in SiC technology.

 

The R&D facility is expected to provide a technology and innovation base for the company as it develops its manufacturing operations in Odisha, while also creating greater linkages between industrial semiconductor production and academic research.

 

The SiCSem approval comes as Odisha moves from attracting semiconductor proposals to developing a manufacturing ecosystem.

 

The state’s first semiconductor project, RIR Power Electronics Ltd’s ₹620-crore unit, has already entered the construction phase. RIR is setting up the country’s first silicon carbide manufacturing facility.

 

Odisha has so far secured commitments from five semiconductor companies for setting up manufacturing and related facilities in the state, with a combined investment of ₹10,899 crore.

 

Apart from SiCSem and RIR Power Electronics, US-headquartered 3D Glass Solutions (3DGS) Inc has proposed an integrated advanced packaging and embedded glass substrate facility with an investment of ₹1,943 crore.

 

It has collaborated with Intel Corporation for the country’s first 3D chip packaging plant.