Overview
Odisha signed a major deal with Intel and 3D Glass Solutions on 28-29 May 2026 to bring advanced chip substrate manufacturing to India. The project, worth $3.3 billion, will be set up in Bhubaneswar, create over 1,800 jobs and strengthen India's semiconductor ecosystem.
A Historic Agreement
The Odisha government signed a landmark Memorandum of Understanding (MoU) with Intel Corporation and US-based 3D Glass Solutions (3DGS) on 28 and 29 May 2026. The agreement aims to bring advanced semiconductor substrate manufacturing technology to India. The signing took place in Santa Clara, California, with top officials joining virtually from India. Union Minister Ashwini Vaishnaw called it a major step for India's semiconductor ambitions. Odisha Chief Minister Mohan Charan Majhi termed it a "new chapter in Odisha's growth story".
What is Substrate Manufacturing and Why Does It Matter?
A substrate is a critical component in semiconductor packaging. It connects and supports semiconductor chips used in electronic devices. Until now, substrate manufacturing was a missing link in India's semiconductor value chain. Glass core substrates are a next-generation technology offering better thermal and electrical properties compared to conventional organic substrates. They prevent warping, allow more computing power, and are increasingly sought after for AI processors and multi-chip architectures.
Key Details of the MoU
The project represents an estimated investment of $3.3 billion, one of the largest high-technology manufacturing investments in India. The facility will be located in the Bhubaneswar-Khurda region. Implementation will be done in phases over five to six years. Intel will act as a technology partner, providing technology know-how, process expertise, technology licensing, quality systems, and workforce capability building. The facility will focus on advanced packaging glass core substrates, high-density interconnect (HDI) substrates and associated semiconductor technologies.
Job Creation and Economic Impact
The project is expected to generate more than 1,800 direct high-skilled jobs. It will also create significant indirect employment opportunities across the broader manufacturing and technology ecosystem. The initiative is expected to help develop a local supplier ecosystem and ancillary industries. Officials said the project can trigger the emergence of a broader semiconductor ecosystem comprising upstream suppliers of speciality chemicals, advanced materials, capital equipment and glass substrates, as well as downstream electronics and system integration industries.
India's First Advanced 3D Glass Chip Packaging Unit
The MoU builds on an earlier project already underway in Odisha. In April 2026, the foundation stone was laid for India's first advanced 3D glass chip packaging unit at Info Valley in Bhubaneswar. This unit is being set up by 3D Glass Solutions through its wholly-owned Indian subsidiary, Heterogeneous Integration Packaging Solutions Private Limited (HIPSPL). The unit was approved under the India Semiconductor Mission in August 2025. 3D Glass Solutions has each about 11-13% equity investment from Intel, aerospace and defence contractor Lockheed Martin and Applied Materials, as well as venture capital funds.
Project Cost, Capacity and Output
The 3DGS unit involves an investment of approximately ₹1,943 crore (approximately $3.3 billion as per MoU). The facility will produce about 70,000 glass panel substrates annually, 50 million assembled units, and nearly 13,000 advanced 3D Heterogeneous Integration (3DHI) modules. Commercial production is expected to begin by August 2028. The vertically integrated unit will package semiconductor chips for high-stakes applications including artificial intelligence, 5G networks, defence systems, data centres, high-performance computing, RF, automotive, photonics and co-packaged optics. The technology stack centred on glass interposers and embedded glass substrates represents a