The Odisha Cabinet has approved a customized incentive package of 50% for RIR Power Electronics Limited to establish India’s first Silicon Carbide (SiC) semiconductor manufacturing facility in Bhubaneswar. The facility to be developed at the Electronic Manufacturing Cluster (EMC) Park in Infovalley, involves a total investment of ₹618.60 crore and will be implemented in two phases over two years. This decision positions Odisha as a frontrunner in India’s semiconductor manufacturing sector.
The ceremony for the facility was held on September 7, 2024. RIR Power Electronics Limited, India’s sole manufacturer of silicon-based power devices will focus on SiC-based devices to serve key industries such as electric vehicles (EV), renewable energy, railways and defence. The state-of-the-art facility will incorporate advanced processes like epitaxial layer deposition and packaging, strengthening India’s domestic manufacturing capabilities.
Odisha Chief Minister Mohan Charan Majhi stated that the enhanced incentive package which increased from 30% to 50%, amounts to ₹110 crore and will be disbursed in two phases. He highlighted that the support was vital to retain the project in Odisha as other states were competing to attract the investment. The project is expected to create 750 jobs and contribute to local supply chain development and workforce skilling in the region. Odisha is among the few states with a dedicated Semiconductor Policy, which incentivizes fabrication units, design firms and supply chain stakeholders across the semiconductor value chain. The state also runs the O-Chip Program, which supports semiconductor design startups and companies with EDA tools, mentorship and research grants.
Additionally, RIR plans to collaborate with IIT Bhubaneswar for technical research and innovation. This initiative is poised to transform Odisha into a leading semiconductor hub in India, driving industrial growth and technological advancements. By creating large-scale employment opportunities, encouraging innovations and establishing a strong semiconductor ecosystem, the project signifies a crucial step in strengthening India’s self-reliance in semiconductor manufacturing.
