India’s semiconductor ambitions got a fresh boost with the signing of a tripartite memorandum of understanding between the Odisha government, Intel Corporation and US-based 3D Glass Solutions Inc (3DGS) on May 29 to establish an advanced packaging glass core substrate manufacturing facility in the state.
The development comes as India sharpens its focus on strategic technologies, including semiconductors, artificial intelligence and electronics manufacturing, amid rising geopolitical competition and growing demand for resilient global supply chains.
The proposed project, to be located in the Bhubaneswar-Khurda region, entails an estimated investment of about $3.3 billion, making it among the country’s largest investments in high-technology manufacturing.
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The agreement was signed in the presence of Electronics and IT minister Ashwini Vaishnaw, Odisha Chief Minister Mohan Charan Majhi, Intel chief executive Lip-Bu Tan and senior industry executives.
Officials said the facility would manufacture advanced packaging glass core substrates, high-density interconnect substrates and related semiconductor components, with Intel expected to provide technology expertise and process support.
Vaishnaw said the agreement aligned with the Centre’s broader strategy of developing a complete semiconductor manufacturing ecosystem in the country. He said the participation of global technology firms reflected growing industry confidence in India’s semiconductor push under the India Semiconductor Mission.
The minister cited recent investments and partnerships involving global semiconductor equipment and materials companies such as Applied Materials, Lam Research, Tokyo Electron and Merck, along with Tata Electronics’ collaboration with Dutch chip equipment maker ASML, as evidence of rising momentum in the sector.
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India has intensified efforts to build domestic semiconductor capabilities through incentives covering chip fabrication, packaging, display manufacturing and compound semiconductors. The government has approved multiple semiconductor and electronics manufacturing proposals over the past two years as part of its plan to reduce import dependence and position India as an alternative global manufacturing hub.
Industry executives said advanced packaging technologies are becoming increasingly critical as chipmakers seek higher performance and energy efficiency. Glass core substrates are seen as a next-generation technology for semiconductor packaging due to their superior thermal and electrical properties compared with conventional organic substrates.
The Odisha project is proposed to be implemented in phases over five to six years. Once operational, it is expected to generate more than 1,800 direct high-skilled jobs while also creating indirect employment opportunities across the electronics manufacturing and semiconductor supply chain ecosystem.
State government officials said the project would help Odisha emerge as a key destination for semiconductor and electronics investments, supported by infrastructure development and policy incentives aimed at attracting high-technology industries.
The proposed facility is also expected to support export-oriented manufacturing and strengthen India’s participation in global semiconductor supply chains at a time when countries worldwide are seeking to diversify chip production networks beyond traditional manufacturing centres.
