Under the leadership of CM Naveen Patnaik, the Odisha cabinet with the consentient accord passed an amendment to the Odisha Semiconductor Manufacturing and Fabless Policy 2023.
The newly approved Odisha Semiconductor Manufacturing and Fabless Policy 2023 is aimed at attracting investors for establishing semiconductor manufacturing hubs, chip manufacturing and fabless design houses across the state.
Odisha has been developing as a major IT and manufacturing hub in the country. Odisha Semiconductor Manufacturing & Fabless Policy is one of the major technological and manufacturing policies set to revive the east coast of India.
The Odisha Semiconductor Manufacturing And Fabless Policy-2023 is certainly a chipping turn in the state’s vigorous effort to create a semiconductor ecosystem.
The Government of Odisha introduced the Odisha Semiconductor Manufacturing and Fabless Policy-2023 in September 2021.
This policy aims to foster a thriving ecosystem by establishing a startup hub for semiconductor R&D, design and manufacturing firms and also, nurturing the nation’s pool of semiconductor design talent.
The latest semiconductor policy of the state will certainly give a major boost to the consistent effort of introducing the semiconductor design hub across the state.
The Key Amendments Under The New Odisha Semiconductor Manufacturing And Fabless Policy-2023:
- Mega projects exceeding INR 500 Cr in investment can now effortlessly access an upper limit of INR 25 Cr per annum for a span of 7 years towards interest subsidy, as the previous 5% capping for interest subvention has been eliminated.
- Additionally, such mega projects are entitled to reimbursement of R&D expenditures up to INR 2 Cr annually for 10 years.
- As for the Production Linked Incentive (PLI), all units are now eligible to apply for the incentive for a continuous period of 5 years within the 7-year period following the commencement of production.
- In terms of skill development, eligible units will receive reimbursement of up to INR 2 Cr per annum for 5 years to facilitate the training of their employees engaged in core operations.
It is aimed to bolster the provisions for fiscal support under interest subvention, Production Linked Incentives (PLI), and investments in R&D and skill development training.
The demand for semiconductors is likely to reach USD 100 billion by 2025. The demand for semiconductors was mostly met by imports would provide an opportunity for the state to take the lead and become a trillion-dollar economy.
Now after Recent UP’s nod to the state’s semiconductor policy and Gujarat and Tamil Nadu’s already existing policies on the semiconductor ecosystem – Odisha’s long waited Odisha Semiconductor Manufacturing And Fabless Policy-2023 get a way through to create a solid framework on semiconductors and drawing a valuable semiconductor policy.
