The cabinet ministry has notified that with the help of this policy, Odisha is expected to transform itself into an important destination of semiconductor manufacturing and design
In an effort to boost semiconductor manufacturing, the cabinet ministry of Odisha has finally approved the much-awaited semiconductor manufacturing and fabless policy in the state, which would draw the attention of various global investors to invest into manufacturing of semiconductor/computer chips. The decades of hare-brained efforts and initiatives have now forced the nation to develop the semiconductor manufacturing ecosystem and various states have also unleashed the policies of their own to meet the same.
The cabinet ministry has notified that with the help of this policy, Odisha is expected to transform itself into an important destination of semiconductor manufacturing and design. Apart from that, the state is also under an impression that this policy would set-up at least one chip production facility and scores of fabless design firms.
On the other hand, the policy is likely to craft around 5000 direct and 20,000 indirect employment opportunities in the state for a time of at least seven years. The policy came to light after the news surfaced that a UK based company is willing to set-up a semiconductor fabrication facility in the state’s Ganjam district, and is speculated to invest around Rs 30,000 crore in the first phase. A couple of months back, the SRAM & MRAM Technologies and Projects India Pvt Limited had also signed an MoU with the state government to establish a semiconductor unit.
The point to be noted is that Gujarat is the first Indian state to unleash a dedicated semiconductor policy and the state is now already furnished with a couple of promised investments such as from Vedanta Group and US firm Micron Technology for a testing and packaging unit. But, the fact is that the latter will get 50 percent incentive of the venture cost from the government and another 20 percent from the state.
The overall investment cost of the plant is around $2.75 billion of which Micron will be investing $825 million. Now, Odisha has turned to be the third state to unleash a semiconductor policy in the state. In an effort to further boost semiconductor manufacturing in the country, the union government has organized second edition of Semicon India 2023 where numerous global semiconductor bigwigs will join the seminar who will speak on their interests in investing and developing semiconductor industry in India.