Odisha has enhanced its semiconductor policy with additional fiscal incentives and a broader focus on supply chain inputs, aiming to attract large investments and foster a comprehensive ecosystem beyond chip manufacturing.
Odisha has widened its semiconductor pitch with a policy change that offers an extra 25% fiscal support on eligible capital spending for projects cleared by the India Semiconductor Mission, according to Business Standard. The support will run alongside the Government of India’s assistance and will be released in line with project milestones approved by the mission.
The revised framework goes beyond chip-making plants. It now covers semiconductor equipment, semiconductor-grade chemicals, specialised gases, advanced materials and other critical supply-chain inputs, in addition to semiconductor manufacturing, assembly, testing, marking and packaging, display manufacturing and fabless design. According to the report, the state also plans customised incentive packages for large projects in equipment, input supply chains and raw materials, subject to Cabinet approval on the recommendation of a committee led by the chief secretary.
The policy was first notified in September 2023 and has already been amended twice, in March 2024 and July 2025. Business Standard said the framework has drawn proposals from five companies so far, with two projects already receiving support under the India Semiconductor Mission.
Chief Secretary Anu Garg said the change gives the state more room to shape incentives for large projects where standard support may not be enough. “The government expects the expanded semiconductor ecosystem will generate employment well beyond the core manufacturing facilities,” she said, adding that the measures should create direct and indirect jobs across manufacturing, advanced materials, logistics and ancillary sectors. The state said the broader plan is meant to strengthen investor confidence, cut import dependence and help build a more integrated industrial base around semiconductors.
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