India’s standing as a preferred hub for research and development has only enhanced in recent times. Innovation and technological breakthroughs are making the country a favoured destination for global companies. Over one lakh engineers are making India a compelling manufacturing destination. Understandably, global chip companies are rapidly engaging Indian engineers.
Even less-banded states are jumping on the semiconductor bandwagon. Odisha, for instance, has its own semiconductor policy which, according to Business Today, “focuses on manufacturing, packaging and testing and fabless.”
Gujarat deserves credit for taking the lead in this field. It’s the first state to introduce a semiconductor policy by offering an incentive of 20% of the approved project cost. This is besides the 50% offered by the centre. The report adds that the state has already attracted two high-value proposals, a case in point is the $19.5 billion Vedanta semiconductor plant, which is awaiting government approval, and Micron’s $2.75 billion worth of testing and assembly plant.
Odisha Cabinet has followed a similar scheme: 25% incentives for Silicon, Compound, Display & ATMP, which brings the total incentive for companies setting fabs in the state to 75%, the report highlights. This means the total cost of the project they recommend will be only 25%. Interestingly, Uttar Pradesh too has announced a similar semiconductor policy in which it will offer a 25% incentive over the government’s 50% incentive.
“Odisha approved the most progressive ‘Semiconductor Policy’ For Fab, Fabless and Talent ecosystem development. It has become the ‘1st state’ to offer DLI incentives for the Fabless companies in addition to the government of India’s Incentives under the future Design scheme,” Satya Gupta, President of VLSI Society, told the media house.
He added, “Odisha is the only state to have come up with incentives for the fabless product or IP companies. It is offering 20 per cent incentives for Fabless product/IP companies, bringing it to a total of 70 per cent, including 50 per cent by the government of India.”
The semiconductor projects in Odisha are expected to create around 5,000 jobs and 20,000 indirect employment avenues over seven years. Further, Gupta said that the state desired to support 25 undergrad and 25 postgraduate institutes for R&D and capacity building, apart from encouraging faculty training, internships, and manufacturing technicians training.
An O-Chip Programme for the Development of a Fabless technological environment in Odisha is confirmation, if at all one was needed, of the state’s potential as a technological powerhouse.