Bhubaneswar, Aug 12: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Tuesday approved four new semiconductor projects across Odisha, Punjab, and Andhra Pradesh, with a total estimated investment of Rs 4,594 crore. Among these, Odisha emerged as a key beneficiary, receiving approval for two major semiconductor units under the India Semiconductor Mission.

Welcoming the decision, Union Education Minister Dharmendra Pradhan expressed special gratitude for the Rs 2,250 crore allocation for two semiconductor units in Odisha. He thanked Prime Minister Narendra Modi, Odisha Chief Minister Mohan Charan Majhi, Union Minister for Railways, Electronics & IT Ashwini Vaishnaw, and Odisha’s Electronics & IT Minister Mukesh Mahaling.

Pradhan stated that PM Modi has added a new chapter to the Purvodaya Mission for the development of Eastern India. Under the India Semiconductor Mission, a compound semiconductor fab and ATMP (Assembly, Testing, Marking, and Packaging) unit will be established in Bhubaneswar. This unit will produce silicon carbide semiconductors used in missiles, space, satellites, telecom towers, and rail engines. A dedicated research lab will be set up at IIT Bhubaneswar, and the institute’s research park will collaborate in education and innovation.

Additionally, a 3D glass unit will be established in Info Valley, Khordha. This unit will manufacture various types of glass panels used in chip protection, radar, aerospace, and wireless technologies.

Funding for these units will be shared: 50% by the central government, 25% by the Odisha government, and 25% by private investors. For the Bhubaneswar unit, the central government will contribute Rs700 crore and the state government Rs350 crore. For the Khordha unit, the central government will provide Rs800 crore and the state Rs400 crore. Thus, the double-engine government will invest a total of Rs2,250 crore. The Odisha government will also provide land, water, electricity, and other infrastructure support.

Pradhan further stated that while Odisha has traditionally been known for coal, minerals, and chromite, investments were mostly limited to railways, roads, and ports. Now, due to the efforts of the double-engine government, Odisha is entering the new-age economy. A large semiconductor cluster can be developed based on new-age technologies. Today’s Cabinet decision is a major step toward realizing the vision of a modern economic Odisha.

This move will give Odisha a new identity in the semiconductor and ancillary industries. It reflects the success of the double-engine government. The semiconductor units will especially benefit the automobile and defense sectors. Commercial production is expected to begin within two years. The initiative will boost domestic electronics manufacturing, reduce import dependency, and strengthen Odisha’s semiconductor ecosystem.

The two units are expected to create around 1,500 direct jobs and thousands of indirect employment opportunities. The semiconductor and ancillary industries will witness significant growth, giving a major boost to Odisha’s economy, Minister Pradhan said.

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