Odisha Powers Ahead: SiCSem to Build State’s Second Semiconductor Fab

A New Chapter in India’s Chip Revolution

Odisha is set to mark a major milestone in India’s semiconductor journey as SiCSem Pvt Ltd, a subsidiary of Archean Chemical Industries Ltd, prepares to lay the foundation stone for the state’s second semiconductor fabrication plant on November 1, 2025. The ceremony, to be attended by Chief Minister Mohan Charan Majhi and Union IT Minister Ashwini Vaishnaw, underscores Odisha’s growing prominence in the national technology map.

The move aligns seamlessly with India’s Semiconductor Mission (ISM)—a national initiative aimed at achieving self-reliance in chip manufacturing and reducing dependence on foreign suppliers amid global supply chain uncertainties.

The Project: India’s First Commercial SiC Fab

SiCSem’s upcoming unit in Bhubaneswar’s Info Valley represents an investment of ₹2,067 crore, covering 23 acres of land in one of India’s emerging tech corridors. The plant will be the first commercial facility in the country to manufacture silicon carbide (SiC)–based semiconductor devices, a cutting-edge material known for superior efficiency and durability—particularly in high-performance sectors such as electric vehicles, renewable energy, aerospace, and industrial automation.

The fab is projected to process 60,000 SiC wafers annually and produce nearly 96 million power devices, including MOSFETs and diodes. This capacity will directly benefit India’s EV ecosystem, solar industries, and defense manufacturing capabilities. Moreover, the facility is expected to create 1,000 direct jobs and several thousand indirect opportunities through allied industries, logistics, and service networks.

Odisha’s Expanding Chip Ambitions

The SiCSem project cements Odisha’s position as a rising semiconductor hub. It follows closely on the heels of another major unit—RIR Power Electronics Ltd ongoing SiC fabrication facility—making Odisha one of the few Indian states to host multiple semiconductor manufacturing sites.

This rapid growth mirrors the state’s proactive 2025 Electronics Policy, which focuses on:

·       Encouraging investment in compound semiconductors, 3D packaging, and embedded substrate technologies.

·       Providing incentives to fabs, design startups, and ATMP (Assembly, Testing, Marking, and Packaging) units.

·       Launching the O-Chip Programme, a state-backed initiative targeting 50 homegrown design firms and the creation of 6,000 skilled jobs by 2032.

In August 2025, the ISM approved four semiconductor projects nationwide, with two in Odisha alone—representing over ₹4,000 crore in total investments. This demonstrates both central and state confidence in Odisha’s readiness to anchor advanced technology industries.

Strategic Significance: Local Gains, Global Relevance

The implications of the SiCSem fab extend far beyond state borders. For India, it strengthens supply chain security, reducing reliance on chip imports from Taiwan, China, and the United States—a crucial step amid rising geopolitical tensions.

At the regional level, the project is expected to stimulate Odisha’s economy through technology transfer, industrial diversification, and workforce upskilling. The emergence of semiconductor infrastructure will also attract global partners in design, R&D, and component testing. Reports already hint at interest from major players such as Intel, Micron, and Renesas, seeking long-term collaborations under India’s expanding electronics ecosystem.

From Mining State to Microchip Powerhouse

Odisha’s semiconductor push marks a decisive transformation—from a state once dominated by mining and heavy industries to an emerging hub of high-tech innovation. With robust policy support, reliable power infrastructure, and a growing pool of young engineers, the state has positioned itself at the forefront of India’s technological self-reliance mission.

If projects like SiCSem’s fab stay on schedule, Odisha could soon rival traditional industrial states in the electronics sector, contributing meaningfully to India’s digital economy and global chip competitiveness.

The upcoming foundation ceremony symbolizes more than just a groundbreaking—it is a declaration of India’s intent to lead the next semiconductor wave, with Odisha firmly on the frontline of that future.

(With agency inputs)

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