The Unit Approval Committee (UAC) of the Falta Special Economic Zone under the Ministry of Commerce and Industry has approved SiCSem Private Limited's proposal to establish a silicon carbide (SiC) semiconductor facility with an investment of ₹3,406.25 crore at IDCO Infovalley-II in Arisol Mouza under Jatni tehsil of Khordha district. According to reports from Business Standard, the project was among the two semiconductor proposals approved for Odisha under the India Semiconductor Mission (ISM) last year. The facility will be established on 21.889 acres at the Electronic System Design and Manufacturing (ESDM) Park in Info Valley-II, with the proposal cleared at the 217th meeting of the Unit Approval Committee (UAC). The SiCSem project adds further momentum to Odisha's efforts to emerge as a destination for semiconductor and advanced technology manufacturing, while reinforcing the role of Falta Special Economic Zone in facilitating high-value investments and promoting export-oriented industrial development.
The proposed integrated semiconductor manufacturing facility will cover fabrication, assembly, testing, marking and packaging of SiC semiconductor devices. As reported by Business Standard, the facility is proposed to have an annual production capacity of 4.8 million SiC diodes and 91.2 million SiC MOSFETs. The proposed unit will manufacture SiC diodes and SiC metal-oxide-semiconductor field-effect transistors (MOSFETs), which are increasingly used in applications requiring high power efficiency, high-temperature performance and faster switching. The facility is expected to cater to the growing demand for advanced semiconductor technologies and is anticipated to strengthen India's domestic semiconductor production capabilities while contributing significantly to the country's export-oriented manufacturing base.
According to the project proposal reviewed by Business Standard, SiCSem is projected to generate export turnover of around ₹7,043 crore over the first five years of operations, with net foreign exchange earnings estimated at around ₹4,523 crore during the same period. The facility is expected to generate employment for around 1,270 people, adding to the high-skilled workforce being created around Odisha's emerging semiconductor and electronics manufacturing clusters. The scale of production is expected to strengthen domestic manufacturing capabilities in a strategically important semiconductor segment and reduce dependence on overseas supply chains for specialised power semiconductor devices.
The SiC facility is part of a broader strategy by SiCSem to develop an integrated semiconductor manufacturing capability in Odisha rather than limiting its operations to a single stage of the value chain. As reported by Business Standard, the company has also established a dedicated research and development centre, the Silicon Carbide Research and Innovation Centre (SICRIC) at IIT Bhubaneswar with an investment of ₹64 crore. The R&D facility is expected to provide a technology and innovation base for the company as it develops its manufacturing operations in Odisha, while also creating greater linkages between industrial semiconductor production and academic research. The unit is projected to highlight the role of the Special Economic Zone framework in attracting capital-intensive and technology-driven investments with substantial employment and export potential.
The SiCSem approval comes as Odisha moves from attracting semiconductor proposals to developing a manufacturing ecosystem. According to Business Standard, Odisha has so far secured commitments from five semiconductor companies for setting up manufacturing and related facilities in the state, with a combined investment of ₹10,899 crore. Apart from SiCSem and RIR Power Electronics, US-headquartered 3D Glass Solutions (3DGS) Inc has proposed an integrated advanced packaging and embedded glass substrate facility with an investment of ₹1,943 crore, having collaborated with Intel Corporation for the country's first 3D chip packaging plant. The state's first semiconductor project, RIR Power Electronics Ltd's ₹620-crore unit, has already entered the construction phase. With the addition of the SiCSem facility, Odisha's semiconductor ambitions are set to gain further traction, positioning the state as an increasingly important hub for next-generation electronics and advanced manufacturing.
