Odisha’s AI And Semiconductor Initiatives Herald A New Era In Industrial Development

Odisha is fast becoming a leading hub for digital innovation and advanced manufacturing through strategic initiatives in Artificial Intelligence (AI) and the Electronics System Design & Manufacturing (ESDM) sector. To this end, the state has institutionalized AI adoption via a dedicated AI Cell and launched the Odisha AI Mission under the approved AI Policy 2025.

Simultaneously, Odisha is building a robust semiconductor ecosystem with specialized facilities, global partnerships, and high-value investments, including approved manufacturing units under the India Semiconductor Mission.

These efforts aim to drive governance transformation, economic growth, and technological leadership, aligning with the vision of Viksit Odisha 2036.

Artificial Intelligence

Artificial Intelligence (AI) is emerging as a key driver of Odisha’s digital transformation and is increasingly enabling smarter planning, efficient service delivery, and greater transparency across government operations. Odisha has taken decisive steps to institutionalise AI adoption through the creation of a dedicated AI Cell within the Electronics & IT Department.

With the cabinet approval of the Odisha AI Policy 2025, Odisha now has a comprehensive framework to accelerate AI deployment across the state. The government has established the Odisha AI Mission, a whole-of-government structure that brings together departments, academic institutions, industry partners, and civil society to operationalise the policy.

Odisha is also building strong institutional partnerships to deepen its AI ecosystem. Notably, collaborations with NASSCOM and the Wadhwani Foundation are strengthening capability development and industry engagement.

Under the IndiaAI Mission, NASSCOM is supporting the establishment of a State AI Centre of Excellence in Bhubaneswar, which will serve as a hub for advanced research, model development, and enterprise adoption.

In parallel, an MoU with IIT Bhubaneswar supports sectoral research, technology validation, pilot deployments, and innovation-led entrepreneurial growth.

A major focus area is language technology and inclusion. Odisha, in collaboration with ‘BHASHINI’, is expanding the Odia language corpus and developing AI-powered tools such as speech-to-text systems for legislative proceedings and digital services. These initiatives ensure that AI solutions are culturally grounded and accessible to all citizens.

Strengthening Odisha’s talent pipeline is a critical component of this effort. Odisha aims for 15 per cent of STEM graduates to specialise in emerging technologies by 2029, rising to 55 per cent by 2036, while ensuring that 75 per cent of government officials are trained in digital and AI fundamentals.

Odisha has moved into active solution deployment: priority problem statements have been identified across key sectors, including health, agriculture, education, disaster management, finance, and administrative services, and partnerships have been initiated with competent solution providers to begin proof-of-concept projects.

Departments are being supported to enhance data quality, structure, and consistency, recognising that high-quality, hyper-local datasets are foundational to building impactful AI solutions tailored to Odisha’s unique socio-economic context.

Together, these initiatives underscore Odisha’s commitment to using AI as a practical instrument to achieve the goals of Viksit Odisha 2036. The department’s focus is not merely on adopting advanced technologies, but on leveraging AI to bring tangible improvements to governance, expand economic opportunity and enhance public service delivery.

ESDM and Semiconductor Sector

Odisha has developed a robust and future-ready ecosystem to support the Electronics System Design and Manufacturing (ESDM) and semiconductor value chain, anchored by a set of specialised facilities designed to accelerate innovation, manufacturing, and talent development.

• The ‘Electropreneur Park’ at Bhubaneswar provides state-of-the-art incubation infrastructure for electronics startups, enabling product development and IP creation.

• Odisha’s Electronics Manufacturing Cluster (EMC), spread across of 216 acres offers plug-and-play facilities, for large-scale electronics manufacturing. More than 60 acres of land have been already allotted to 11 units and approximately INR 2,400 crores of investment have been proposed.

• Odisha has further strengthened its position in advanced semiconductor technologies through the Silicon Carbide Research Innovation Centre (SiCRIC) at IIT Bhubaneswar, which supports R&D, materials innovation, and collaboration with global industry partners.

• Complementing this is the ESDM and Semiconductor Park, spread across a land parcel of 223 acres near IIT Bhubaneswar. Prime Minister Narendra Modi laid the foundation stone for this in September 2025.

• Additionally, the ‘Digital Fab Lab’ at STPI, Bhubaneswar enables prototyping, design validation, and hands-on training in VLSI and electronics design.

• Odisha has taken a major step toward building a future-ready semiconductor workforce through a strategic partnership between the Skill Development & Technical Education Department (SD&TE), Government of Odisha and ITE Education Services, Singapore.

• The Integrated Power Electronics Pilot Facility proposed at IIT Bhubaneswar marks a significant step in strengthening Odisha’s advanced manufacturing and semiconductor talent ecosystem. This state-of-the-art pilot centre will provide hands-on training, prototyping, and experimentation in cutting-edge power electronics manufacturing.

• Odisha’s “O-Chip Program” provides startups with access to Electronic Design Automation (EDA) tools and a shared IP repository with a targeted KPI of two tape outs per annum. It is a centre of excellence established to create a unified environment for semiconductor research, design, testing, and manufacturing.

• This program is further strengthened through strategic collaboration with Semiconductor Fabless Accelerator Lab (SFAL) for adoption of best practices in semiconductor design and fabless innovation, and with the Centre for Development of Advanced Computing (C-DAC) for design and prototyping support under the national CHIPIN program.

Odisha Semiconductor Policy: India’s Most Comprehensive Incentive Framework

The Odisha Semiconductor Policy is strategically crafted to position Odisha as a leading hub in the global semiconductor ecosystem, addressing critical resource needs and investment priorities of manufacturers.

• Fiscal Support

• For India Semiconductory Mission (ISM) projects: Additional State support of up to 50 per cent of the assistance provided by the union government.

• For non-ISM projects:

• Fabrication (Fab) units: Capital support up to 30 per cent of project cost. 50 per cent fiscal support for the first three projects.

• ATMP/OSAT units: Capital expenditure supports up to 30 per cent. Additionally, a 50 per cent fiscal support is available for the first five projects (ATMP/OSAT and Compound Semiconductor Fab).

Utilities and Production Support

Odisha provides assured and abundant availability of two critical inputs for semiconductor manufacturing – reliable power and water at the lowest tariffs in the country.

Production Linked Incentive (PLI): 5% to 1% on net sales is tapered for 5 years.

Power subsidy: @ ₹2 per unit.

Water subsidy: @ ₹7.65 per cubic metre.

The reason for providing the industry with the cheapest power and water in India is that Odisha is surplus in power and water.

R&D and Innovation Support

• Design Linked Incentive (DLI): Funding cap of ₹20 crore, including 10 per cent seed funding and 10 per cent milestone-based reimbursement.

• International patent support: Up to ₹10 lakh for global IP protection.

• Standard R&D grants: Up to ₹5 crore over five years for innovation-driven projects.

• Mega Project R&D support: Up to ₹20 crore over 10 years.

• Engineer Relocation Support: 20–30 per cent of CTC.

• Company Skilling Assistance: ₹2 crore per unit per year for five years.

Odisha has already made strong strides in the semiconductor sector. For the first time, under the India Semiconductor Mission, two semiconductor manufacturing units, namely SiCSem Private Limited and 3D Glass Solutions Inc. have been approved in Odisha.

• SiCSem Private Limited - Expected to generate nearly 1,000 direct jobs, with strong local employment focus. The unit will specialise in Silicon Carbide (SiC) semiconductor devices, positioning Odisha at the forefront of next-generation semiconductor innovation.

• 3D Glass Solutions Inc. - With a committed investment of ₹1,944 crore, 3D Glass Solutions Inc. marks a major addition to Odisha’s growing semiconductor ecosystem, particularly in the high-value domain of advanced packaging technologies.

• RIR Power Electronics Project marks another strategic addition to Odisha’s growing semiconductor Odisha has an investment pipeline of over ₹10,000 crore across key segments such as Multilayer PCBs, OSAT, Memory Chips, and SIM manufacturing, reflecting strong industry confidence and growth potential.

The state has built competitive strengths in solar energy solutions, with multiple facilities producing photovoltaic modules, solar panels, and inverters; in energy storage systems, where advanced lithium battery manufacturing supports the growing EV and renewable energy sectors; in electronics components; and in digital infrastructure solutions, such as export-oriented production of kiosks, digital signage, and ATVMs for global markets.

This ecosystem continues to expand with high-value pipeline investments. Together, these capabilities demonstrate Odisha’s emergence as a promising ESDM hub with a growing base of advanced manufacturing units.