New Delhi: India is leaving no stone unturned to establish chip manufacturing as well as semiconductor ecosystem within the country with all its efforts. On 21 July, the Odisha cabinet cleared the Odisha Semiconductor Manufacturing and Fabless Policy to appeal investors to enter the manufacturing of semiconductor/electronic chips in Odisha.
Through this policy, the state aims to reposition Odisha in the field of semiconductor design and manufacturing.
As soon as the policy comes into force, the Odisha government is looking forward to setting up at least one semiconductor manufacturing unit and 100 fabless design companies in the state.
About 5000 direct employees and 20,000 indirect jobs are estimated to be generated during the policy period of 7 years for the semiconductor ecosystem in Odisha.
#Odisha Cabinet headed by CM @naveen_odisha Odisha Semiconductor Manufacturing and Fabless Policy approved. It will develop an end-to-end semiconductor ecosystem, transform Odisha into a leading center of semiconductor manufacturing and create a reservoir of semiconductor design talent.… pic.twitter.com/sakXn20NTk
– CMO Odisha (@CMO_Odisha) 21 July 2023
Such a policy comes after news that a UK-based firm is laying the groundwork for a semiconductor manufacturing unit in Odisha’s Ganjam district. Apart from this, an investment of Rs 30,000 crore is estimated in the first phase.
Earlier on March 26, SRAM and MRAM Technologies & Projects India Private Limited, the Indian arm of UK-based SRAM and MRAM Group, signed a memorandum of understanding (MoU) with the state government for setting up a semiconductor unit within the state.
As India plans to set up a sound semiconductor ecosystem, it first started its journey from Gujarat. Mahatma Gandhi’s home state was the first to launch a semiconductor policy and has investment commitments from Anil Agarwal-led Vedanta as well as US chip maker Micron.
The US-based chip maker will get 50 per cent incentive from the central government and 20 per cent from the Gujarat government towards the project cost.
Gujarat’s $2.75 billion semiconductor plan will get $825 million funding from Micron.
Presently, Odisha has become the third Indian state to launch the Semiconductor Policy.