US-based Silicon Power Group is set to invest $121.73 million in Odisha to set up a manufacturing plant to produce 150 millimetres of silicon carbide, which is a semiconductor component. 

Silicon carbide is a critical component used in chips for various industrial power & energy applications and electric vehicles.

The manufacturing plant is set to be operational within 18- 24 months. 

The company’s promoter Harshad Mehta has submitted a Letter of Intent to the visiting Odisha delegation that was led by Minister of State for Electronics and Information Technology TusharKanti Behera. 

India’s local chip market is projected to grow by $80 billion by 2028, which is almost four times its current size of $23 billion.

The investments are set to be done by the group’s Indian unit, RiR Power Electronics. 

The move comes as top executives from Foxconn and semiconductor firms Micron and AMD are set to attend a conference in Prime Minister Narendra Modi’s home state of Gujarat, an effort by the federal government to lure investments.

India is aiming to establish itself as a semiconductor manufacturing hub rivalling the likes of Taiwan.