Context

Electronics and Semiconductors have emerged as critical elements of economic growth and strategic security for any country. While India steadfastly marches towards the USD 5 Trillion economy aptly supported by USD 1 Trillion Digital economy, it is imperative that India develops a self-reliant and sustainable electronics and semiconductor ecosystem within the country.

In recent years, the ICT and Electronics sector has experienced significant growth, largely driven by escalating demand from emerging market economies. A noteworthy shift in manufacturing locales has also been observed, with a move away from Europe and North America towards Asia. Presently, China is the predominant global destination for ESDM, with its electronics production accounting for nearly 40% of global output and 30% of global electronics exports. Furthermore, Southeast Asia, particularly Vietnam, and Indonesia, has emerged as a prominent global hub for electronics manufacturing. This is attributed to a combination of factors, including lower labor costs, and attractive incentives.

The global electronics market is currently valued at around USD 2 trillion and is expected to grow significantly due to the increasing penetration of emerging technologies such as 5G, IoT, Artificial Intelligence, Robotics, Smart Mobility, and Smart Manufacturing.

Odisha being a prominent industrial state, is embarking upon its journey to attract Semiconductor value chain investments in the state.

Vision

• The Odisha Semiconductor Manufacturing and Fabless Policy envisions developing an end-to-end semiconductor ecosystem in Odisha. The policy aspires to contribute to the national semiconductor ecosystem development objectives and aims to transform Odisha into a leading center of semiconductor design and manufacturing, a startup hub for semiconductor R&D and design companies, and the primary repository of the semiconductor design talent in the country.

Objective

• To create a semiconductor design and manufacturing ecosystem in Odisha that can contribute to the state’s economic growth, its culture of innovation, create jobs for the people, and help India increase its self-reliance in an area of strategic importance.
• To create state-of-the-art infrastructure with cutting-edge design and testing tools that can enable startups, companies, and academic institutions to collaborate and fulfill their true potential.
• To build a conducive fabless ecosystem in the state and attract a minimum of 100-120 chip design companies and startups in the next 7 years.
• To create a minimum of 5000-6000 high-end jobs in the chip design space in the next 7 years.
• To create a pipeline of industry-ready talent pool by fostering linkages between industry and academia, by regularly updating the electronics curriculum taught in universities and technical institutions, and by enabling industry and academic institutions to undertake skill-building workshops.
• To empower the semiconductor ecosystem, deliver at least two full-fledged chip designs every year catering to the national and international markets.
• To create an environment in the medium to long term that is developed and conducive for the eventual establishment of fabrication units in the state and promotes higher value addition in semiconductor design and manufacturing.

Ease of doing business

• Single window clearance system with a clear timeline for project approvals and guidance
• Online system for submission of application forms for various clearances and tracking of the application
• An “Apex Committee”, led by the Chief Secretary, will oversee the implementation of the Odisha Semiconductor and Fabless Policy. This committee will monitor policy implementation, project progress, grievance redressal, and approval of incentives on a quarterly basis.
• A “Policy Advisory Group” will be formed for the Semiconductor and Electronics sector, comprising of industry experts and senior representatives from various departments. This group will provide advice and direction to the Semiconductor and Electronics sector in the state.
• The Odisha Computer Applications Centre (OCAC) will be the Nodal Agency responsible for the implementation and monitoring of various activities under this Policy on behalf of the Electronics & Information Technology Department.
• The Electronics & Information Technology Department will periodically review the implementation of the policy for facilitation and mid-course correction where necessary.
• The IT and Electronics Promotion Cell at OCAC will act as the Project Implementation Unit (PIU) and Project Management Unit (PMU) for the Odisha Semiconductor and Fabless policy.
• Operational guidelines and statutory notifications issued by the Electronics & Information Technology Department/OCAC will govern the implementation of provisions covering incentives, concessions, and competent authority. OCAC will administer the disbursement of incentives, ensuring that they do not exceed the capital investment made by entrepreneurs/companies.
• Incentive disbursement by the implementing agency will follow a chronological order of approved claims, and the date of commercial production for availing incentives will be determined by a competent authority notified in operational guidelines.
• A unit will become ineligible for incentives if it fails to file a complete claim within one year of starting production or within the time limit prescribed in the operational guidelines of this Policy. Condonation of delay for time overrun in implementation of projects may be considered by the Empowered Committee (EC) on a case-by-case basis. The EC will be chaired by the Secretary, E&IT Department, and will include the Secretaries of the Finance Department, Industries Department, and MSME Department.
• The State Government reserves the right to amend any provision of the policy at any time.

Policy incentives