₹3,406 Crore Semiconductor Manufacturing Project in Khordha, Odisha

Odisha Approves ₹3,406 Crore Semiconductor Manufacturing Project in Khordha

Bhubaneswar, Odisha: Odisha has taken another significant step towards becoming a major semiconductor manufacturing destination in India, with approval granted for a ₹3,406.25 crore semiconductor manufacturing project by SiCSem Private Limited at IDCO Infovalley-II in Khordha district. The project is expected to strengthen India's semiconductor manufacturing capabilities, expand high-technology industrial production, generate skilled employment and increase export potential.

The approval was announced by the Unit Approval Committee (UAC) of Falta Special Economic Zone (FSEZ), under the Ministry of Commerce and Industry, following its 217th meeting. The proposed semiconductor manufacturing facility will be established across approximately 21.889 acres at Arisol Mouza, Jatni Tahasil, in Khordha district, near Bhubaneswar.

SiCSem Project to Manufacture Silicon Carbide Semiconductors

The proposed Odisha semiconductor manufacturing project will focus on producing Silicon Carbide (SiC) semiconductor devices, including SiC diodes and Silicon Carbide Metal-Oxide-Semiconductor Field-Effect Transistors (MOSFETs). These advanced semiconductor components are important for applications requiring efficient power conversion, high-temperature performance and reliable operation under demanding electrical conditions.

According to the project details, the facility is planned to have an annual production capacity of 4.8 million SiC diodes and 91.2 million SiC MOSFETs. This planned production capacity could strengthen domestic supplies of specialised power semiconductor devices used across several high-growth industries.

Silicon Carbide semiconductors are increasingly relevant to electric vehicles, renewable energy systems, industrial power equipment, fast-charging infrastructure, telecommunications and other applications that require efficient management of electrical power. Their ability to operate under demanding conditions makes them valuable for modern power electronics and advanced industrial systems.

The SiCSem semiconductor project therefore represents an important development for the electronics manufacturing industry in India, particularly in the specialised power semiconductor segment.

₹7,043 Crore Export Potential Over Five Years

The semiconductor manufacturing unit is projected to generate export turnover of approximately ₹7,043 crore over its first five years of operations. Net Foreign Exchange earnings during the same period are estimated at around ₹4,523 crore.

These projections underline the project's potential contribution to India's export-oriented manufacturing sector. Semiconductor devices are critical components in numerous electronic products and industrial systems, and strengthening domestic manufacturing capacity can help Indian businesses participate more effectively in international supply chains.

The project also reflects the growing importance of high-value electronics manufacturing in India's industrial development strategy. In addition to attracting investment, semiconductor projects can create demand for specialised machinery, testing equipment, cleanroom infrastructure, industrial utilities, precision components and technical services.

However, the projected production, employment and export figures depend on implementation, commissioning and the eventual operating performance of the facility.

Around 1,270 Employment Opportunities Expected

The SiCSem semiconductor manufacturing project is expected to generate employment for approximately 1,270 people. The development could create opportunities for engineers, technicians, production personnel, quality-control specialists, equipment-maintenance professionals and other skilled workers.

Semiconductor manufacturing requires specialised technical capabilities, disciplined production processes and stringent quality-control systems. Workforce development and technical training will therefore be important to the project's long-term operational success.

The investment may also support indirect employment through suppliers, logistics providers, equipment-service companies, industrial contractors and other businesses connected with semiconductor manufacturing.

For Odisha, the project adds momentum to efforts to diversify the state's industrial base and develop advanced manufacturing capabilities alongside its established sectors.

Odisha Strengthens Its Semiconductor and Electronics Manufacturing Ecosystem

Odisha has been attracting semiconductor and advanced electronics investments as India seeks to build a stronger domestic semiconductor value chain. The SiCSem project adds to the state's ambitions to develop an ecosystem that includes semiconductor fabrication, device manufacturing, assembly, testing, packaging, research and development, and supporting industrial services.

The project approval follows the Union government's earlier approval of semiconductor proposals involving SiCSem and other companies under the India Semiconductor Mission. Together with other initiatives in the state, these developments are intended to encourage investment in advanced electronics manufacturing and reduce dependence on overseas sources for selected critical technologies.

A growing semiconductor manufacturing ecosystem can also benefit related industries, including automotive electronics, industrial automation, renewable energy equipment, telecommunications hardware and electronic component manufacturing.

The availability of reliable industrial infrastructure, utilities, technical talent, transport connectivity and supporting suppliers will remain important factors in attracting further semiconductor investment to Odisha.

Manufacturing Efficiency and Industrial Infrastructure Will Be Critical

Large-scale semiconductor manufacturing projects require careful planning, high equipment reliability, precise process control and effective production management. Companies operating in this sector must coordinate machinery, materials, workforce deployment, maintenance, quality assurance and production scheduling to achieve consistent output.

Industrial engineering and production planning and control (PPC) can help manufacturing businesses improve resource utilisation, monitor production performance and reduce operational losses. Customised manufacturing ERP software can support coordination between procurement, inventory, production, maintenance, quality and dispatch functions.

For companies supplying the semiconductor and electronics manufacturing industry in India, these capabilities can become increasingly important as customer requirements, product complexity and quality expectations grow.

A Strategic Step for India's Semiconductor Industry

The approval of SiCSem's ₹3,406.25 crore semiconductor manufacturing project marks an important milestone in Odisha's emerging high-technology manufacturing landscape. With planned annual capacity of 4.8 million SiC diodes and 91.2 million SiC MOSFETs, projected five-year export turnover of ₹7,043 crore and expected employment for around 1,270 people, the project has the potential to contribute to India's power semiconductor capabilities.

The next priorities will be effective project execution, technology deployment, workforce development and the establishment of dependable manufacturing operations. If implemented successfully, the facility could strengthen Odisha's position in semiconductor manufacturing while supporting India's broader ambition to develop a competitive electronics and semiconductor industry.