Odisha Amends Semiconductor Policy to Boost Industrial Growth
Synopsis
Odisha has announced the 3rd Amendment to its Semiconductor Manufacturing and Fabless Policy, aligned with ISM 2.0, aiming to strengthen the chip value chain, attract high-value investment, and build tech talent as part of CM Mohan Charan Majhi's Samruddha Odisha 2036 growth agenda.
Key Takeaways
Odisha's Chief Minister's Office announced the 3rd Amendment to the Odisha Semiconductor Manufacturing and Fabless Policy on 12 August 2026 .
The revised policy is explicitly aligned with ISM 2.0 , the second phase of the central government's India Semiconductor Mission launched in 2021.
The amendment targets three areas: strengthening the semiconductor value chain , attracting high-value investments , and building talent and capabilities .
The policy sits within CM Mohan Charan Majhi 's broader Samruddha Odisha 2036 long-range prosperity vision.
Odisha joins several Indian states competing to align state incentives with national semiconductor targets and attract fab or chip-design investments.
Odisha has moved to sharpen its semiconductor ambitions, with the state government announcing the 3rd Amendment to the Odisha Semiconductor Manufacturing and Fabless Policy — a signal that the eastern state is serious about carving out a place in India's fast-evolving chip economy. The Chief Minister's Office of Odisha made the announcement on Wednesday, 12 August 2026, framing the revision as a cornerstone of Chief Minister Mohan Charan Majhi's industrial vision for the state.
Aligning with India's National Chip Drive
The amended policy is explicitly aligned with ISM 2.0 — the second phase of the India Semiconductor Mission, the central government's flagship programme launched in 2021 under the Ministry of Electronics and IT to build a domestic semiconductor and display manufacturing ecosystem. By syncing state-level incentives with the national framework, Odisha is positioning itself to compete for the high-value fab and chip-design investments that several Indian states are chasing simultaneously.
India's semiconductor import bill runs into tens of billions of dollars annually, and the push for self-reliance has triggered a race among states to offer the most attractive policy environment. Odisha's amendment is a direct bid to stay in that race — and move up the field.
What the Amendment Targets: Value Chain, Talent, Capital
The CMO's announcement identifies three pillars the revised policy is designed to strengthen: the semiconductor value chain, high-value investment attraction, and talent development. The framing points to a strategy that goes beyond assembly — Odisha is signalling interest in both manufacturing and fabless chip design, the latter being the segment where India already has a global footprint through its engineering workforce.
The broader goal, as stated by the CMO, is to advance 'Samruddha Odisha 2036' — the state government's long-range prosperity vision. Semiconductor-linked jobs and investments are clearly being positioned as a key engine of that plan.
Majhi's Industrial Bet on a High-Stakes Sector
Mohan Charan Majhi, who took charge as Chief Minister in June 2024 leading the BJP government in Odisha, has made industrial investment attraction a signature priority. The semiconductor policy revision is the third iteration of a framework the state has been building and refining — a sign of institutional continuity even as the political leadership has changed. What investors and analysts will now watch is whether the amended terms translate into concrete project announcements and whether Odisha can attract the kind of anchor investment that puts a state on the global semiconductor map.
The chips are on the table. The question is who picks them up.
Point of View
Iterative instrument rather than a one-time announcement — a more sophisticated approach than many state-level industrial frameworks. By explicitly anchoring the revision to ISM 2.0, the Majhi government is threading state ambition into central incentive architecture, which is precisely the playbook that has worked for states that have successfully attracted PLI-linked investments. The real test, however, is whether Odisha can differentiate itself from Gujarat, Karnataka, and Telangana — states with deeper existing tech ecosystems — by offering something specific on talent pipeline or land-and-infrastructure readiness that the policy text alone cannot convey.
NationPress
13 Aug 2026
Frequently Asked Questions
What is the Odisha Semiconductor Manufacturing and Fabless Policy?
It is a state-level policy framework designed to develop semiconductor manufacturing and chip-design (fabless) capabilities in Odisha, offering incentives to attract domestic and foreign investment in the semiconductor sector.
What is ISM 2.0 and how does Odisha's policy relate to it?
ISM 2.0 refers to the second phase of the India Semiconductor Mission, the central government's programme launched in 2021 to build a domestic semiconductor ecosystem. Odisha's 3rd Amendment aligns state-level incentives with this national framework to maximise investment attraction.
What is Samruddha Odisha 2036?
Samruddha Odisha 2036 is the Odisha state government's long-range vision for economic prosperity and industrial development, with semiconductor-linked growth identified as one of its key pillars under CM Mohan Charan Majhi.
Who is Mohan Charan Majhi?
Mohan Charan Majhi is the Chief Minister of Odisha, heading the BJP-led state government since June 2024 . Industrial investment attraction, including in the semiconductor sector, has been a stated priority of his administration.
Why are Indian states competing for semiconductor investments?
India imports semiconductors worth tens of billions of dollars annually and has launched the India Semiconductor Mission to build domestic manufacturing capacity. States are revising policies to align with central incentives and attract the high-value jobs and capital that chip manufacturing and design bring.
