Bhubaneswar: The Odisha Cabinet has approved the third amendment to the Odisha Semiconductor Manufacturing and Fabless Policy, 2023, in a move aimed at broadening the state’s semiconductor ecosystem and attracting investments across critical segments of the industry.
The policy, originally notified in September 2023, was subsequently amended in March 2024 and July 2025. So far, proposals from five companies have been approved under the policy, including two projects that have secured support under the India Semiconductor Mission (ISM).
The latest amendment seeks to align Odisha’s semiconductor policy with the evolving priorities of ISM 2.0 and incorporate stakeholder feedback. It expands the scope of incentive support to include semiconductor equipment manufacturing, semiconductor-grade chemicals, specialty gases, advanced materials and other components of the semiconductor supply chain, besides semiconductor manufacturing, ATMP/OSAT, display manufacturing and fabless design.
Under the amended policy, the Odisha government will provide additional fiscal support equivalent to 25 per cent of the eligible capital expenditure for projects approved by the India Semiconductor Mission.
The state support will be disbursed on a pari passu basis with the fiscal assistance provided by the Centre, linked to project milestones and corresponding releases approved under the ISM.
The amendment also provides for customised incentive packages for mega projects in semiconductor equipment, input supply chains and raw materials. Such packages will be considered subject to approval by the State Cabinet on the recommendation of a high-level committee headed by the Chief Secretary.
The state government expects the expanded policy framework to attract investments across manufacturing, advanced materials, logistics and ancillary sectors while generating direct and indirect employment. It is also expected to promote skill development and create opportunities for supporting MSMEs.
With the inclusion of critical value-chain segments, the amended policy seeks to move Odisha beyond a project-centric approach towards an integrated semiconductor ecosystem covering manufacturing, supply chains, materials and enabling infrastructure.
The government said the measures are aimed at enhancing the attractiveness of Odisha as an investment destination, strengthening investor confidence and building a resilient semiconductor ecosystem. The policy is also intended to support the Atmanirbhar Bharat objective by reducing import dependence and creating high-value employment opportunities in semiconductor manufacturing and related fields.
