Bhubaneswar: In order to strengthen the state position in the semiconductor sector, the Odisha Cabinet has approved the third amendment to the Odisha Semiconductor Manufacturing and Fabless Policy.
Chief Secretary Shrimati Anu Garg briefed Media after the Cabinet Meeting. Originally notified in September 2023, the policy previously underwent revisions in March 2024 and July 2025 to attract investments in strategic segments like compound semiconductors and OSAT/ATMP units. To date, proposals from five companies have been approved under this framework, with two projects securing support under the India Semiconductor Mission.
The latest amendment acts as a proactive step aligned with stakeholder feedback and evolving national policy priorities. It introduces expanded provisions to support crucial emerging segments, including semiconductor equipment manufacturing, research and development, semiconductor-grade chemicals, specialty gases, advanced materials, and supply chain components.
To maintain synergy with India Semiconductor Mission 2.0, the state government has included these supply chain components alongside existing categories such as display manufacturing, ATMP/OSAT, and fabless design. Under the updated policy, the Odisha government will offer additional fiscal support amounting to 25 percent of the eligible capital expenditure for projects approved by the national mission. This financial assistance will be disbursed on a pari passu basis alongside central government funds, tied directly to project milestones and approved releases.
Additionally, the state has enabled customized incentive packages for mega projects in semiconductor equipment, raw materials, and the input supply chain. These customized packages will require approval from the State Cabinet following recommendations from a High-Level Committee chaired by the Chief Secretary.
State officials anticipate that these expanded incentives will generate substantial direct and indirect employment across manufacturing, advanced materials, logistics, and ancillary industries. The initiative aims to catalyze skill development, foster local micro, small, and medium enterprises, reduce import reliance under the Atmanirbhar Bharat vision, and establish Odisha as a major destination for semiconductor innovation and manufacturing.