Odisha Cabinet Approves Key Amendments to Semiconductor Policy to Attract High-Tech Investments

Bhubaneswar: In a major push to position Odisha as a leading destination for electronics and semiconductor innovation, the State Cabinet on Wednesday approved the Second Amendment to the Odisha Semiconductor Manufacturing and Fabless Policy-2023. The move is aimed at strengthening the state’s appeal to high-tech investors through a comprehensive and investor-centric incentive framework.

The revised policy brings in a stronger package of fiscal and non-fiscal incentives, designed to boost the long-term viability of semiconductor ventures in the state. It responds to both national trends in the semiconductor sector and the specific feedback received from stakeholders over the past year.

The state government’s proactive approach has already yielded results, with strategic project proposals in compound semiconductors, Assembly, Testing, Marking and Packaging (ATMP) units, and fabless chip design receiving approval. Companies such as RIR Power Electronics Ltd, SiCSem Pvt. Ltd, and Heterogeneous Integrated Packaging Systems Pvt. Ltd are among the first to be onboarded under this ambitious initiative. Officials said the momentum continues with a steady flow of new expressions of interest aligned with the India Semiconductor Mission.

The amendment introduces 16 key changes, including special incentive packages for early-bird projects in each sub-sector, expanded Performance-Linked Incentives (PLI), relocation support for companies shifting operations to Odisha, and additional benefits for semiconductor park developers. It also includes reinforced provisions for R&D and skilling to ensure the development of a high-quality workforce for the sector.

To ensure smooth execution, the revised policy has been aligned with the Odisha Industrial Facilitation Act and the Industrial Policy Resolution (IPR) 2022. An Apex Committee, headed by the Chief Secretary, will be responsible for policy implementation and fast-tracking necessary approvals, reflecting the government’s emphasis on efficiency and governance.

Speaking on the occasion, Electronics and IT Minister Mukesh Mahaling said, “This amendment reaffirms Odisha’s commitment to building a globally competitive and investor-friendly semiconductor ecosystem. With a sharpened focus on innovation, sustainability, and ease of doing business, we aim to make Odisha a prominent player in India’s semiconductor story.”