image credits: Investinodisha
In a groundbreaking move that positions Odisha at the forefront of India’s technological advancement, the Odisha cabinet on Wednesday approved RIR Power Electronics to establish India’s First Silicon Carbide Semiconductor Hub in Bhubaneswar, a development that promises to redefine the state’s industrial landscape.
The Vision of Silicon Carbide (SiC) Semiconductor Hub
The decision to set up this state-of-the-art manufacturing unit in Bhubaneswar is not just about economic growth; it’s about pioneering in the field of semiconductors.
Silicon Carbide (SiC) semiconductors are renowned for their superior performance in high-power, high-frequency, and high-temperature applications, making them ideal for sectors like electric vehicles (EVs), renewable energy, railways, and defense.
This facility aims to cater to these burgeoning sectors, thereby aligning with global trends towards sustainable and advanced technology solutions.
RIR Power Electronics Ltd: The Chosen Innovator
RIR Power Electronics Ltd., already known as India’s sole manufacturer of silicon-based power devices, has been entrusted with this ambitious project.
Serving clients like BHEL, ABB, and Indian Railways, RIR has a proven track record in the power electronics industry. Their selection to lead this project underscores their expertise and the trust placed in them to drive Odisha’s vision of becoming a semiconductor hub.
Customized Incentive Package
To facilitate the establishment of this pioneering facility, the Odisha government has crafted a tailored incentive package. This package is designed to mitigate initial investment risks and foster an environment conducive to high-tech manufacturing.
While specific details of the incentives are not public, they typically include tax benefits, subsidies on capital investment, and possibly land at concessional rates, ensuring that RIR can establish a robust and competitive operation.
Silicon Carbide (SiC) Semiconductor Hub in Bhubaneswar
Choosing Bhubaneswar as the location for this facility is strategic. The city is not only the capital of Odisha but also emerging as a tech and innovation hub.
With existing infrastructure like the Info Valley, which hosted the ground-breaking ceremony in September 2024, Bhubaneswar offers a conducive environment for tech industries.
The city’s connectivity, skilled labor pool, and supportive government policies make it an ideal spot for such a high-tech venture.
Project Timeline
The journey of this project began with the state-level single window clearance in November 2023, followed by the ground-breaking ceremony in September 2024.
The Odisha cabinet’s final approval of the customized incentive package came on January 22, 2025, marking a significant milestone.
This timeline reflects the state’s commitment to fast-tracking industrial projects to capitalize on emerging technologies.
Economic and Technological Impact of Silicon Carbide (SiC) Semiconductor Hub
Economic Growth: With an investment of Rs.618.6 crore in cutting-edge technology, this project will contribute significantly to Odisha’s GDP through job creation and industrial output. It’s expected to create over 750 jobs, from R&D to manufacturing roles.
Technological Innovation: Being the first of its kind in India, the facility will foster local innovation in semiconductor technology. It will introduce high-value processes like epitaxial layer deposition and packaging, enhancing India’s manufacturing capabilities.
Industrial Ecosystem: Positioning Odisha as a leader in the semiconductor ecosystem will attract further investments, create a local supply chain, and encourage skilling opportunities, aligning with the state’s broader industrial policy.
Future Prospects
The establishment of this facility is just the beginning. As part of Odisha’s Semiconductor Policy and the O-Chip Programme, which supports semiconductor design startups and academic institutions, more such initiatives are expected.
This policy framework aims to make Odisha a primary repository of semiconductor design talent, contributing to the national goal of self-reliance in critical technology sectors.
