The Odisha state cabinet has approved a customised incentive package for RIR Power Electronics Limited in a significant step toward strengthening India’s semiconductor ecosystem. The company will set up the country’s first silicon carbide (SiC) semiconductor manufacturing facility in Bhubaneswar with a total investment of ₹618.60 crore. Chief Minister Mohan Charan Majhi announced the cabinet’s decision to increase the incentive package from 30 to 50 per cent. This move follows RIR’s request for additional support to ensure the project remains viable. The facility will be at the Electronic Manufacturing Cluster (EMC) Park in Infovalley.

Positioning Odisha as a Semiconductor Leader

RIR Power Electronics, India’s only manufacturer of silicon-based power devices, has an impressive client list that includes BHEL, ABB, and Indian Railways. The SiC semiconductor project is expected to cement Odisha's position as a key player in the semiconductor ecosystem. It will catalyse industrial growth, foster local supply chain development, and create opportunities for skill enhancement in the state. “This decision to increase incentives by 20 per cent was made to retain the project in Odisha, as RIR was exploring opportunities in other states,” Majhi stated. The total incentive package, valued at ₹110 crore, will be disbursed in two phases.

Boosting Domestic Semiconductor Capabilities

The SiC semiconductor facility will feature advanced processes, including epitaxial layer deposition and packaging, marking a milestone in India’s domestic manufacturing capabilities. This will be the country’s first compound semiconductor lab, significantly reducing reliance on imports and fostering innovation in high-value technologies. The project will be executed in two phases and is projected to create 750 employment opportunities, further contributing to the state’s economic development.

Odisha’s Strategic Move for Industrial Growth

With this initiative, Odisha aims to attract more investments in the semiconductor sector, establishing itself as a hub for high-tech industries. The project aligns with India’s vision of self-reliance in semiconductor manufacturing and serves as a model for other states to emulate.

Key Highlights:

Investment: ₹618.60 crore
Incentive Package: Increased from 30 to 50 per cent, totalling ₹110 crore
Location: EMC Park, Infovalley, Bhubaneswar
Job Creation: 750 direct employment opportunities
Technological Impact: India’s first SiC semiconductor lab with advanced manufacturing processes.