Tracking Odisha’s Semiconductor Policy in 2024 – A New Tide in the East Coast

Odisha Semiconductor Manufacturing & Fabless Policy is one of the major technological and manufacturing policies set to revive the east coast of India.

Odisha envisages creating a complete semiconductor manufacturing ecosystem. Currently with one of the four states with a semiconductor policy, Orissa semiconductor policy aims to bid big to make itself a semiconductor manufacturing hub.

Last year in July, Odisha shared the blueprint of its new semiconductor policy.

On July 21, the Odisha Cabinet approved Odisha Semiconductor Manufacturing & Fabless Policy to facilitate investors to enter into the manufacturing of Semiconductor/Electronic Chips in Odisha.

Key Objectives of the New Odisha Semiconductor Manufacturing & Fabless Policy

• In an attempt to make Orissa the new semiconductor design and manufacturing destination, the new Odisha Semiconductor Manufacturing & Fabless Policy keeps a favourable outlook to create semiconductor manufacturing.
• The Odisha Semiconductor Manufacturing & Fabless Policy aims to edify a holistic fabless ecosystem.
• Odisha under its new semiconductor policy aims to invite 100-120 chip design companies and build several startups in the next 7 years.
• Odisha also aims to deliver two full-fledged chip designs every year for the indigenous and global markets.
• The most interesting part of the new semiconductor policy of Odisha is to leverage a comprehensive layout for semiconductor manufacturing, packaging and testing and fabless aka design and R&D.

Odisha Incentive Metrics Compared With Gujarat, Uttar Pradesh Semiconductor Policy

• Gujarat was the very first state to roll out a semiconductor policy. Also, Uttar Pradesh recently approved its long-awaited semiconductor policy. In its semiconductor policy UP, the state has announced a lucrative 20 per cent project cost, above the existing 50 per cent extended by the centre. Also, the semiconductor policy introduced by the UP Govt will be valid for the next five(5) years and the nodal agency shall be the watchdog.
• For the first 5 projects with investment above INR 5000 Crore, an additional 25% discount over the prevailing IPR rate will also be given to setup semiconductor design and fab.
• There will be a 100% stamp duty exemption as mentioned in the Odisha Semiconductor Manufacturing & Fabless Policy.
• 100% exemption from payment of Electricity Duty & Electrical Inspection for a period of 10 years from the date of commencement of commercial production
• On the other hand, Odisha Cabinet has also extended a similar incentive in its Odisha Semiconductor Manufacturing & Fabless Policy.
• Odisha Semiconductor Manufacturing & Fabless Policy aims to give 25 per cent incentives for Silicon, Compound, Display & ATMP. The total incentive for companies establishing fabs in the state is 75 per cent – which brings the total cost of the project  to just 25 per cent. 

  

  • “The man behind the extensive journey of Odisha’s growth in the startup ecosystem and creating the Odisha Semiconductor Manufacturing & Fabless Policy has been Manoj Kumar Mishra, Principal Secretary, Electronics & Information Technology and Chairman, OCAC, Government of Odisha.”
    He was also instrumental in launching the most ambitious Odisha Semiconductor Fab and Fab less Innovation and Acceleration Program (O-Chip) with the guidance and support of CM-Pattnayak and 5T Chairman- V.K. Pandiyan. It aims to make Odisha the cradle of semiconductor innovation in India. The O-Chip Program shall cultivate an ecosystem where startups, researchers, and students can thrive with the provision of tools, funding, and mentorship they need.
    

    A UK-Based Company To Setup Semiconductor Fabrication in Odisha

    The semiconductor policy got headlines after a UK-based company shared its plans to set up a semiconductor fabrication unit in Odisha’s Ganjam district. There are also reports that the company aims to invest Rs 30,000 crore in the first phase.
    On the other hand, The SRAM & MRAM Technologies and Projects India Pvt Limited, the Indian unit of UK-based SRAM & MRAM Group inked a memorandum of understanding (MoU) with the state government on March 26, 2023, to set up the semiconductor unit in the state.

  Ease of Doing Business in Odisha

  • The state under the new semiconductor policy to bring a single window clearance system with a clear timeline for project approvals and guidance.
  • Also for investors, an online system for submission of application forms for various clearances and tracking of the application will be availed.
  • An “Apex Committee”, led by the Chief Secretary, will oversee the implementation of the Odisha Semiconductor and Fabless Policy. This committee will monitor policy implementation, project progress, grievance redressal, and approval of incentives every quarter.
  • A “Policy Advisory Group” will be formed for the Semiconductor and Electronics sector, comprising of industry experts and senior representatives from various departments. This group will provide advice and direction to the Semiconductor and Electronics sector in the state.
  • The Electronics & Information Technology Department will periodically review the implementation of the policy for facilitation and mid-course correction where necessary.

  Recent MoUs of Odisha To Create a Chip Design Ecosystem

  The Odisha Government has signed three strategic MoUs. In which two are major electronics bodies and one is a company. This includes India’s premier industry body for ESDM & Intelligent Electronics – the India Electronics and Semiconductor Association(IESA), the industry body’s main objective is to establish India as a leading global hub for electronics. second is the Electronic and Computer Software Export Promotion Council(ESC).

  And lastly, Synopsys is an American electronic design automation company. last year, the state also hosted the Odisha4Silicon-2023. The event brought numerous national and global stakeholders from the semiconductor and ESDM ecosystem under one roof.

  Odisha4Silicon-2023 a Flagship State Event to Create  Semiconductor Ecosystem

  Odisha4Silicon-2023, propelled by the Odisha government has been the statesman to create a lucrative and sustainable investments and innovation hub driving the semiconductor industry. Odisha4Silicon-2023 covers major objectives and themes which include talent pool, chip architecture, and chip design and creates dialogue to envision the future of chip designing. This is known to be a well success along with the Odisha Semiconductor Manufacturing & Fabless Policy.

  The Global Electronics Market Overview

  The current global electronics market is valued at around USD 2 trillion. The global electronics market is further expected to flourish with major emerging technologies shaping up rampantly. The global electronics market will be driven by nascent yet bullish technologies like 5G, IoT, Artificial Intelligence, Robotics, Smart Mobility, and Smart Manufacturing.

  India has a History of Being a Major R&D Hub

  For decades now, India has been the sweet destination for global chip companies. May it be Samsung, NXP, STMicroelectronics, Qualcomm, Foxconn, AMD and Infineon etc. Today these companies generate a handsome number of jobs and have been active in STEM education or CSR activities. Moving a step further from fabless, currently Indian states are proposing a new semiconductor policy to make the Made in India chip. Odisha Semiconductor Manufacturing & Fabless Policy is indeed a stepping stone towards a momentous journey of India’s upcoming semiconductor manufacturing dream.

  References: https://investodisha.gov.in/odisha-semicon-fabless-policy-2023/ | https://www.businesstoday.in/latest/economy/story/odisha-eyes-chip-fab-approves-semiconductor-policy-390845-2023-07-22 | https://thevoltpost.com/semiconductor-policy-of-up-gives-interest-subsidy/