State HLCA approval granted Sancode Semi OSAT Facility, Odisha
₹1,650 crore. Khordha district. In-principle approval from Odisha’s High-Level Clearance Authority, February 2, 2026. What the facility will do, what conditions apply, and what talent Odisha needs to build for it.
What was approved, by whom, and what conditions apply
On February 2, 2026, Sancode Semi Private Limited — a subsidiary of Sancode Technologies Limited — received in-principle approval from the High-Level Clearance Authority (HLCA) of the Government of Odisha to establish an Outsourced Semiconductor Assembly and Test (OSAT) unit in Khordha district.
- Approving bodyHigh-Level Clearance Authority (HLCA), Government of Odisha
- Approval dateFebruary 2, 2026
- Approval stageIn-principle — subject to statutory and regulatory clearances
- EntitySancode Semi Private Limited (subsidiary of Sancode Technologies Limited, BSE: 543897)
- Facility typeOSAT — Outsourced Semiconductor Assembly and Test
- LocationKhordha district, Odisha
- Total capex~₹1,650 crore, to be deployed over the project implementation period
- Direct employment570 direct jobs
- Signed byMihir Deepak Vora, Managing Director, Sancode Technologies Limited
What “in-principle approval” means
An in-principle or in-principal approval from the HLCA is the first formal government nod — it confirms the state is willing to host the project and enables the company to proceed with land acquisition, detailed project planning, and statutory applications. It is conditional: Sancode must comply with standard conditions in the approval documents and obtain all applicable statutory, regulatory, and other necessary clearances before construction begins. It is not a guarantee of completion, but it is a significant and binding regulatory milestone.
What an OSAT facility actually does
OSAT stands for Outsourced Semiconductor Assembly and Test. It is the back-end stage of chip manufacturing — after the wafer has been fabricated, an OSAT facility takes over to assemble, package, and test the chips before they go into products.
The semiconductor supply chain has two main stages. Front-end fabrication (which happens at fabs like Tata Electronics Dholera) manufactures the silicon wafer with circuit patterns printed on it. Back-end operations — done by OSAT and ATMP facilities — then cut the wafer into individual chips, package each chip in a protective housing, connect it to a substrate, and test it to verify it functions correctly before shipping.
The back-end process steps an OSAT facility handles
- Wafer dicing: Cutting the fabricated wafer into individual dies (chips)
- Die attach: Bonding each die to a substrate or lead frame
- Wire bonding / flip chip: Creating electrical connections between the die and the package
- Encapsulation / moulding: Sealing the die in a protective resin housing
- Final test: Electrical and functional testing of each packaged chip
- Mark and pack: Laser marking, tape-and-reel, and shipping preparation
OSAT is where most of India’s semiconductor investment is concentrated right now. Micron in Sanand, Kaynes Semicon in Sanand, CG Power–Renesas in Sanand, Tata TSAT in Jagiroad — all of these are back-end OSAT/ATMP operations. The Sancode Semi facility in Khordha would add Odisha to this growing list of Indian OSAT locations.
For a deeper comparison of OSAT and ATMP and how they differ, see our full OSAT and ATMP explainer →
Why Odisha is moving on semiconductors
The Sancode approval is not a standalone event. Odisha has been building a deliberate position in India’s semiconductor ecosystem, backed by state policy and industry interest that predates the announcement.
The Government of Odisha has an active semiconductor manufacturing and fabless policy — the Operational Guideline for Odisha Semiconductor Manufacturing and Fabless Policy is publicly available through the state’s IT department. The policy offers incentives for both manufacturing and design-focused semiconductor companies, positioning Odisha as a destination beyond the Gujarat-centric narrative of India’s semiconductor build-out.
Odisha Semiconductor CoE at IIIT Bhubaneswar
Odisha Chief Minister Mohan Charan Majhi directed the Electronics and IT department to collaborate with IIIT Bhubaneswar on a Centre of Excellence in Semiconductors — focused on research, development, manufacturing, and advanced skill-building. IIIT Bhubaneswar has been advised to introduce post-graduate diploma and certificate courses in advanced semiconductor engineering from the 2026–27 academic year. The CoE is a direct response to industry interest in the state, of which the Sancode OSAT approval is the most concrete current example.
Khordha district, where the Sancode facility is planned, is home to Bhubaneswar — Odisha’s capital and its primary engineering education hub. The district hosts IIIT Bhubaneswar, and is adjacent to institutions including KIIT, SOA, and over a dozen AICTE-approved engineering colleges. The geography matters: a ₹1,650 crore OSAT facility in Khordha is within commuting and recruitment distance of the state’s largest concentration of engineering talent.
What skills the Sancode facility will need — and where Odisha stands
570 direct jobs sounds modest against the ₹1,650 crore investment. But OSAT facilities hire across a specific talent profile that Odisha’s engineering institutions are not yet producing at scale.
Cleanroom operators
Running assembly and test equipment in an ISO-class cleanroom environment. Diploma or ITI level. Largest hiring category at any OSAT facility.
Process technicians
Managing die attach, wire bonding, and encapsulation equipment. Requires hands-on training on actual OSAT process tools — not available from standard ECE curricula.
Test engineers
Developing and running electrical test programmes on packaged chips. ATE (Automated Test Equipment) skills — Teradyne, Advantest. ECE or EEE graduates with domain training.
Process engineers
Owning individual process steps, monitoring yield, managing equipment qualification and SOP adherence across the back-end flow.
Quality & reliability
Incoming material inspection, in-process quality checks, failure analysis of rejected units, MSIL compliance. Strong on JEDEC and IPC standards.
Production supervisors
Shift-level management of cleanroom operations. Typically recruited from 2–3 years of technician experience at another OSAT or electronics manufacturing facility.
The Odisha gap — and the window
Odisha has 142 AICTE-approved engineering colleges and a growing semiconductor policy infrastructure. What it does not yet have is OSAT-aligned curriculum, cleanroom training labs, or industry-linked placement pipelines for back-end semiconductor roles. The 2026–27 academic year — when IIIT Bhubaneswar is set to launch its first semiconductor courses — is the right moment for institutions across the state to assess their own position. The Sancode facility, if it reaches construction and commissioning, will need trained people. The institutions that build that pipeline early will have placement partnerships before the facility opens; the ones that wait will be competing for attention after the relationships are already formed.
Sancode Semi Odisha OSAT — quick questions
What is the Sancode Semi OSAT facility in Odisha?
Sancode Semi Private Limited, a subsidiary of Sancode Technologies Limited, has received in-principle approval from the Government of Odisha to set up an Outsourced Semiconductor Assembly and Test (OSAT) unit in Khordha district. The project involves a total capital expenditure of approximately ₹1,650 crore and is expected to generate 570 direct jobs.
What did the Odisha HLCA approve for Sancode?
The High-Level Clearance Authority (HLCA) of the Government of Odisha granted in-principle approval on February 2, 2026, for Sancode Semi Private Limited to establish an OSAT unit in Khordha district. The approval is conditional on compliance with standard conditions and obtaining all applicable statutory and regulatory clearances.
Where in Odisha is the Sancode OSAT facility planned?
Khordha district, Odisha. Khordha is the district that includes Bhubaneswar, Odisha’s capital city and its primary engineering education and IT hub.
What does OSAT stand for in semiconductor?
OSAT stands for Outsourced Semiconductor Assembly and Test. It refers to companies and facilities that handle the back-end stages of chip manufacturing — assembling, packaging, and testing chips after the silicon wafer has been fabricated at a front-end fab. Full OSAT and ATMP explainer →
Is the Sancode OSAT project under India Semiconductor Mission?
The Sancode Semi approval is a state-level HLCA clearance from the Government of Odisha — it is not the same as an India Semiconductor Mission (ISM) approval from the central government. ISM approvals are granted by the Cabinet under the Ministry of Electronics and IT and carry central fiscal support. The Sancode project aligns with Odisha’s own semiconductor policy but is currently at the state approval stage. Full ISM explainer →
How many jobs will the Sancode OSAT facility create?
570 direct jobs, as per the official HLCA approval disclosure. OSAT facilities typically also create indirect employment in logistics, facility management, component supply, and engineering services.
What is Sancode Technologies?
Sancode Technologies Limited (BSE: 543897) is a software and product development company offering API-enabled platforms and solutions for digital transformation, finance automation, cloud migration, and AI projects. Its subsidiary Sancode Semi Private Limited is the entity entering semiconductor manufacturing through the Odisha OSAT project. The company is publicly listed and disclosed the HLCA approval under SEBI Regulation 30.
More on India’s OSAT and semiconductor build-out
Building OSAT-ready talent pipelines in Odisha
We work with institutions to design semiconductor education programmes aligned with India’s new OSAT and ATMP facilities — curriculum, lab planning, faculty development, and industry placement linkage.