Patna: The Bihar government has taken a decisive step towards entering India’s semiconductor manufacturing landscape, preparing a proposal to establish a chip fabrication facility in the state. The Industries Department has been tasked with identifying a suitable site, with locations along the banks of the Ganga and Kosi rivers emerging as the preferred choice.
Industries minister Dilip Jaiswal said the decision had been taken “in principle” and that groundwork would begin immediately. “The proposal has been drafted and will be sent to the central government,” he said, adding that riverine districts were being prioritised because semiconductor plants require vast and continuous supplies of water.
The move follows earlier announcements by chief minister Nitish Kumar, who has outlined an ambition to develop Bihar as a semiconductor and artificial intelligence hub. The state cabinet has since cleared a new policy framework to support advanced manufacturing. Prime minister Narendra Modi had also indicated last November that Bihar would be part of the country’s expanding semiconductor ecosystem.
Officials say districts along the Ganga and Kosi — including Patna, Bhagalpur, Begusarai, Samastipur, Vaishali, Saran, Bhojpur, Buxar, Munger, Lakhisarai, Khagaria, Katihar, Saharsa and Supaul — are being assessed. Apart from assured water availability, the areas offer access to power, highways and existing industrial corridors.
Under the plan, Bihar aims to align itself with the Centre’s India Semiconductor Mission, seeking investment in chip fabrication, packaging and design. The state has also spoken of building a wider technology ecosystem, including a mega tech city, fintech clusters and new smart cities.
Officials argue that with improved power infrastructure and a growing pool of skilled workers, Bihar is now positioned to attract high-value manufacturing. If approved by the Centre, the proposed plant would mark the state’s first major foray into semiconductor production — a sector seen as critical to everything from smartphones and electric vehicles to defence technologies.
