Semicon 2.0 and Odisha Silicon Valley: A Major Push for India’s Semiconductor Sector
India is rapidly expanding its capabilities in the semiconductor and electronics manufacturing sector. In a major development, the Union Government has approved Semicon 2.0, while the Odisha Government is developing the Odisha Silicon Valley initiative to attract semiconductor, electronics and IT investments.
The Union Government approved Semicon 2.0 on 15 July 2026 with a total outlay of ₹1,27,500 crore. The programme aims to strengthen India’s semiconductor value chain and develop a broader domestic ecosystem.
Semicon 2.0 Key Highlights
- Total Outlay: ₹1,27,500 crore
- Approval Date: 15 July 2026
- Focus Areas: Semiconductor, Chip Design, Manufacturing and Packaging
- Additional Focus: Research, Equipment, Materials and Talent Development
What is Semicon 2.0?
Semicon 2.0 is an initiative of the Government of India aimed at strengthening the country’s semiconductor ecosystem. The programme focuses on developing a complete semiconductor value chain covering chip design, fabrication, advanced packaging, equipment, materials, research and skilled talent.
Major Focus Areas of Semicon 2.0
- Chip Design: Strengthening semiconductor design capabilities in India.
- Semiconductor Fabs: Expanding semiconductor fabrication capabilities.
- Advanced Packaging: Supporting technologies such as ATMP and OSAT.
- Machines and Materials: Developing the ecosystem for semiconductor equipment and critical materials.
- Research and Development: Supporting research into advanced semiconductor technologies.
- Talent Development: Building a skilled workforce for the semiconductor industry.
What is Odisha Silicon Valley?
Odisha Silicon Valley is an initiative of the Odisha Government to develop a technology ecosystem covering semiconductor, electronics and IT projects.
The proposed Odisha Silicon Valley is planned across approximately 870 acres at Naraj, near Cuttack. The initiative is aimed at attracting technology investments and developing a larger semiconductor and electronics ecosystem in the state.
Odisha Silicon Valley Highlights
- Location: Naraj, near Cuttack
- Area: Approximately 870 acres
- Key Sectors: Semiconductor, Electronics and IT
- Investment Proposals: Around ₹23,600 crore
- Potential Employment: Around 6,100 opportunities
₹23,600 Crore Investment Proposals in Odisha
During SEMICON India 2026, Odisha received investment proposals worth approximately ₹23,600 crore from the semiconductor and technology sector.
According to the government information, these proposals have the potential to generate around 6,100 employment opportunities.
Focus on Silicon Carbide Semiconductors
Silicon Carbide, or SiC, is also becoming an important part of Odisha’s semiconductor ecosystem. During SEMICON India 2026, a Letter of Intent was signed with QuadQuantum for a facility related to the production of SiC substrate wafers.
SiCSem has also received approval for a semiconductor manufacturing facility in Odisha. The facility is associated with the production of Silicon Carbide semiconductor devices, including SiC Diodes and SiC MOSFETs.
How Could Semicon 2.0 Benefit Students and Professionals?
The semiconductor industry requires skilled professionals in areas such as chip design, VLSI, electronics engineering, embedded systems, semiconductor manufacturing, testing, packaging and research.
Since talent development is one of the key focus areas of Semicon 2.0, the expansion of India’s semiconductor ecosystem could create additional opportunities for engineering students and technology professionals.
Important Skills for Students
Students interested in semiconductor careers can explore VLSI, Chip Design, Embedded Systems, Electronics Engineering, Semiconductor Manufacturing and AI Hardware.
Why is Semicon 2.0 Important for India?
Semiconductors are essential for smartphones, automobiles, electric vehicles, telecommunications equipment, data centres, artificial intelligence systems and many other advanced technologies.
Strengthening domestic semiconductor capabilities can support India’s electronics and technology supply chain. Semicon 2.0 is designed to develop this wider ecosystem across manufacturing, design, packaging, equipment, materials, research and talent.
Conclusion
Semicon 2.0, with an outlay of ₹1,27,500 crore, represents a major step towards strengthening India’s semiconductor ecosystem. At the state level, Odisha Silicon Valley is being developed as a technology hub for semiconductor, electronics and IT investments.
These initiatives could contribute to the development of semiconductor manufacturing capabilities, technology infrastructure, investments and skilled employment opportunities in India.
