Odisha Gets ₹3,406 Crore Silicon Carbide Semiconductor Manufacturing Unit

Key Facts

• Project approved on 15 September 2026 with ₹3,406.25 crore investment.
• Located at IDCO Infovalley-II, Arisol Mouza, Jatni Tehsil, Khordha district within Falta Special Economic Zone.
• Manufactures silicon carbide (SiC) diodes and MOSFETs with annual capacity of 4.8 million SiC diodes and 91.2 million SiC MOSFETs.
• Project area covers 21.889 acres.
• Funding comprises ₹700 crore central subsidy, ₹350 crore Odisha government subsidy, and ₹1,956.25 crore promoter contribution.
• Expected to generate ₹7,043 crore export turnover and ₹4,523 crore net foreign exchange over five years.
• Projected to create approximately 1,270 direct jobs.

Background & Context

Silicon carbide (SiC) is a compound semiconductor composed of silicon and carbon atoms. Its wide bandgap enables operation at higher voltages and temperatures than conventional silicon-based semiconductors. This makes SiC devices ideal for high-power and high-temperature applications such as electric vehicles (EVs), renewable energy systems, railways, and defense electronics.

SiCSem Private Limited’s new manufacturing facility is Odisha’s second major semiconductor unit, reinforcing the state’s position as an emerging semiconductor hub. The project forms part of India's India Semiconductor Mission (ISM), aiming to boost domestic semiconductor production, reduce import dependence, and stimulate high-tech industrial growth.

Why This Matters for Exams

The project exemplifies government initiatives to develop cutting-edge semiconductor manufacturing in India, highlighting technology importance, investment magnitude, and regional industrial policy measures. Understanding SiC technology and this facility's strategic significance aligns with syllabus topics related to science and technology, industrial development, and economic geography.

Points to Remember

• Silicon carbide semiconductors have a bandgap approximately three times wider than silicon, enabling higher voltage and temperature operation.
• SiC MOSFETs and diodes are critical components for energy-efficient, high-power applications in EVs, renewable energy, railways, and defense.
• The project is situated within the Falta Special Economic Zone, which provides beneficial infrastructure and policy incentives.
• The funding structure includes grants from the central and Odisha state governments alongside promoter investment.
• SiCSem’s facility is Odisha's second semiconductor plant and is expected to significantly boost export earnings and employment.

Practice MCQs

Question 1

1. ₹3,406.25 crore
2. ₹2,067 crore
3. ₹700 crore
4. ₹350 crore

Answer: ₹3,406.25 crore (Total investment for Odisha's SiCSem semiconductor project)

Question 2

1. Khordha district
2. Bhubaneswar district
3. Cuttack district
4. Jagatsinghpur district

Answer: Khordha district (Location of the SiCSem semiconductor facility)

Question 3

1. 4.8 million SiC MOSFETs
2. 91.2 million SiC diodes
3. 4.8 million SiC diodes and 91.2 million MOSFETs
4. 12 million total units

Answer: 4.8 million SiC diodes and 91.2 million MOSFETs (Annual production capacity)