Odisha Signs MoU with Intel and 3DGS for $3.3 Billion Semiconductor Packaging Project

India's efforts to strengthen its semiconductor ecosystem received a major boost after the Odisha government signed a tripartite memorandum of understanding with Intel Corporation and US-based 3D Glass Solutions (3DGS).  

The proposed project will focus on advanced semiconductor packaging technologies and is expected to become one of the largest high-technology manufacturing investments announced in the country.  

The facility is planned for the Bhubaneswar-Khurda region and forms part of India's broader push to expand domestic capabilities in strategic technology sectors. 

Facility to Manufacture Advanced Semiconductor Components 

The project will focus on the production of advanced packaging glass core substrates, high-density interconnect substrates, and other semiconductor-related components. 

Industry experts view glass core substrate technology as an important advancement in chip packaging due to its ability to support higher performance, improved power efficiency and enhanced thermal management compared with conventional substrate technologies. 

Intel is expected to contribute technical expertise and process support as part of the collaboration. 

Investment To Be Implemented in Phases 

The proposed manufacturing facility involves an estimated investment of approximately $3.3 billion. According to officials, the project will be executed in multiple phases over a period of five to 6 years. 

Once operational, the facility is expected to create more than 1,800 direct skilled jobs while also generating additional employment opportunities across the semiconductor, electronics, and supporting manufacturing sectors. 

The agreement was signed in the presence of Union Electronics and Information Technology Minister Ashwini Vaishnaw, Odisha Chief Minister Mohan Charan Majhi, Intel Chief Executive Officer Lip-Bu Tan and senior industry representatives. 

Part Of India's Semiconductor Expansion Strategy 

The project aligns with the government's objective of building a comprehensive semiconductor manufacturing ecosystem covering fabrication, packaging, display technologies, and semiconductor materials. 

Ashwini Vaishnaw said the participation of leading global technology companies demonstrates increasing confidence in India's semiconductor ambitions under the India Semiconductor Mission. 

The minister also highlighted recent investments and collaborations involving major global semiconductor equipment and materials companies as evidence of growing momentum within the sector. 

Odisha Targets High-Technology Manufacturing Investments 

State government officials believe the project will strengthen Odisha's position as an emerging destination for semiconductor and electronics manufacturing investments. 

The facility is also expected to contribute to export-oriented manufacturing and enhance India's integration into global semiconductor supply chains as countries seek to diversify production beyond traditional manufacturing hubs. 

Read More: Government of India to Introduce Social Security Schemes for Gig Workers; Deadline Set for e-Shram Integration on June 22, 2026! 

Conclusion 

The proposed $3.3 billion semiconductor packaging project represents a significant step in India's technology manufacturing journey. With support from Intel and 3DGS, the facility could strengthen domestic semiconductor capabilities, generate skilled employment and support India's ambitions of becoming an important player in global chip supply chains. 

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