Continental Device India (CDIL Semiconductors) and Kaynes Technology are in discussions with the Odisha government for electronics and semiconductor-linked ventures, as the state sharpens its focus on building a mid-range semiconductor ecosystem. Hemant Sharma, additional chief secretary, industries and I&PR, Odisha, told Fe in an interaction.
CDIL recently added new assembly lines under the Central government’s SPECS scheme, boosting its production capacity for discrete semiconductor packaging by 100 million units. In Mohali, the company is approved under the India Semiconductor Mission (ISM) to produce high-power discrete devices like MOSFETs, IGBTs, Schottky bypass diodes, and transistors, in both silicon and silicon carbide.
With regard to Kaynes, the Union Cabinet has its proposal to set up an ATMP (assembly, testing, marking, packaging) semiconductor unit in Sanand, Gujarat, with an investment of around Rs 3,300 crore. This facility is expected to have capacity to produce around 6.3 million chips per day. It is also investing Rs 352 crore in a Bhopal unit under Madhya Pradesh’s new semiconductor policy to build advanced electronics manufacturing with surface mount technology lines, producing high‐precision assemblies for sectors like automotive, aerospace, defence, medical, IoT, and more. Production is expected by
mid-2026.
‘Top-Up’ strategy to complement the centre’s vision
Sharma said Odisha’s foray into semiconductors is designed to complement the Centre’s broader strategy. The state has adopted what it calls a “top-up” policy, which extends additional benefits over and above the incentives offered by the Union government. “This is an aspirational sector for us. Our policy is a top-up policy, ie, any company who gets some incentives from the Central government, we will top it up by a good amount,” Sharma said.
“Our offering is in the mid-range. There would be one or two fab units in the country, but there would be hundreds of auxiliary items required for a good semiconductor and electronics sector,” Sharma explained.
Land, R&D, and long-term competitiveness
To facilitate this, Odisha has earmarked 1,500 acres between Cuttack and Bhubaneswar for upcoming projects. The state is also investing Rs 500 crore to set up a Centre of Excellence at IIT Bhubaneswar for certification and R&D.
According to Sharma, long-term competitiveness will be critical. “Beyond a point, subsidies don’t matter. What matters is long-term cash flow, taxation, cost of water, power, talent availability. That is where Odisha’s advantage lies,” he said. The state’s mineral-rich resources and coastal access, he added, make it uniquely suited for downstream electronics and semiconductor industries.
Odisha has already attracted players like RIR Power Electronics, SiCSem and 3D Glass Solutions.
