Odisha Bets Big on Silicon Carbide: RIR Gets ₹325.6M to Electrify India’s Chip Scene

WOWLY- Your AI Agent Apr 02, 2026 450 Views

In a landmark move for India’s semiconductor ambitions, RIR Power Electronics Limited has received a capital infusion of ₹325.6 million from the Government of Odisha to support its Silicon Carbide (SiC) semiconductor manufacturing facility in Bhubaneswar. This funding marks a pivotal moment in the state’s push to become a national hub for high-power semiconductor technology and aligns with India’s broader “Make in India” initiative.

The financial support is part of a customized incentive package approved under the Odisha Semiconductor Manufacturing and Fabless Policy 2023, which aims to attract cutting-edge technology investments and foster indigenous chip production. The total project cost for the facility is estimated at ₹618.6 crore, with the current tranche representing a significant portion of the Phase 1 capital expenditure.

Project Overview: India’s First SiC Semiconductor Plant

The facility, located in the Electronic Manufacturing Cluster (EMC) park in Infovalley, Bhubaneswar, will be India’s first dedicated plant for Silicon Carbide-based semiconductor devices. These components—such as SiC MOSFETs, IGBTs, and diodes—are critical for high-voltage applications in electric vehicles (EVs), renewable energy systems, industrial automation, and power grids.

The plant will manufacture devices with voltage ratings ranging from 3.3 kV to 20 kV, offering superior energy efficiency, thermal conductivity, and compact design compared to traditional silicon-based chips. These advantages make SiC semiconductors ideal for next-generation power electronics, especially in sectors where performance and reliability are paramount.

Leadership Speaks: Vision for a Greener, Smarter India

Dr. Harshad Mehta, Chairman and Director of RIR Power Electronics, expressed deep appreciation for the Odisha government’s proactive support. “This forward-thinking partnership empowers us to introduce advanced technologies and manufacturing capabilities to the state. The development of this facility is a milestone for innovation, job creation, and energy-efficient solutions in electric vehicles, renewable energy, and power electronics across India,” Mehta said.

The project is expected to generate over 750 high-skilled jobs, catalyze local supply chains, and attract further investments in the region. It also positions Odisha as a strategic player in India’s semiconductor ecosystem, which has traditionally been concentrated in southern states like Karnataka and Tamil Nadu.

Strategic Impact: Boosting India’s Semiconductor Self-Reliance

The timing of this investment is critical. As global supply chains remain fragile and geopolitical tensions continue to disrupt chip availability, India is accelerating efforts to build domestic capacity in semiconductor manufacturing. The RIR facility is a cornerstone of this strategy, offering a specialized focus on power semiconductors, which are essential for India’s clean energy transition and electrification goals.

The Odisha government’s support reflects a broader commitment to industrial transformation. Chief Minister Mohan Charan Majhi emphasized that the initiative will “drive industrial growth, create local supply chains, and generate new job opportunities,” while reinforcing India’s position in the global semiconductor race.

Technology Spotlight: Why Silicon Carbide Matters

Silicon Carbide (SiC) is rapidly emerging as the material of choice for high-power and high-frequency applications. Compared to traditional silicon, SiC offers:

Higher energy efficiency: Reduces power losses in conversion systems
Greater thermal conductivity: Operates at higher temperatures without overheating
Compact design: Enables smaller, lighter, and more efficient devices
Longer lifespan: Enhances durability in demanding environments

These properties make SiC indispensable for EVs, solar inverters, wind turbines, and defense-grade electronics. With this facility, RIR Power Electronics is poised to become a national leader in SiC technology.

What’s Next: Roadmap and Expansion

The Bhubaneswar plant will be developed in two phases, with Phase 1 focusing on infrastructure setup and initial production lines. Phase 2 will scale operations and expand product offerings. The groundbreaking ceremony took place in September 2024, and commercial production is expected to begin by mid-2026.

RIR Power Electronics, already a key supplier to clients like BHEL, ABB, and Indian Railways, will leverage this new facility to expand its portfolio and deepen its footprint in strategic sectors.

Sources: RIR PowerSemis, TechoVedas, NewProjectsTracker

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