The Government of Odisha signed a landmark tripartite Memorandum of Understanding (MoU) with Intel Corporation and 3D Glass Solutions Inc. (3DGS) on May 29, 2026, to establish a state of the art semiconductor manufacturing facility. Located in the Bhubaneswar–Khurda region, the project involves a massive investment of $3.3 billion (approximately ₹27,500 crore). This initiative positions Odisha as a global hub for advanced semiconductor packaging, marking one of the largest high-technology investments in India.
Details of the Tripartite Agreement
The manufacturing facility will be set up at Info Valley in the Bhubaneswar–Khurda region of Odisha. This mega project is expected to create over 1,800 direct high-skilled jobs for engineers and researchers, along with thousands of indirect employment opportunities in the surrounding ecosystem. The facility will specifically focus on Advanced Packaging Glass Core Substrates, which are critical for the next generation of high-performance computing and artificial intelligence chips.
In this partnership, Intel Corporation, headquartered in Santa Clara, California, will provide the essential technology licensing, process expertise, and quality management systems. 3D Glass Solutions Inc. (3DGS), an Albuquerque-based company founded in 2005, will act as the primary manufacturing partner. 3DGS is renowned for its proprietary APEX Glass technology, which allows for the creation of intricate electronic components with superior precision. The project will be implemented in phases over the next five to six years.
What is Glass Core Substrate Technology?
As semiconductor chips become more powerful, especially for AI and data centers, traditional packaging materials like organic resins are reaching their physical limits. Glass Core Substrates (GCS) represent the next frontier in advanced packaging. Unlike organic materials, glass offers exceptional flatness and thermal stability, allowing for more complex chip designs.
The primary advantage of glass is its ability to withstand high temperatures without warping. This is crucial for System-in-Package (SiP) designs, where multiple chiplets are integrated into a single large package. Glass also enables the creation of ultra fine Through-Glass Vias (TGVs), which are microscopic vertical connections that allow for a much higher density of electrical links between the chip and the substrate.
| Feature | Organic Substrate | Glass Core Substrate | Advantage of Glass |
|---|---|---|---|
| Thermal Expansion | High (12 to 17 ppm) | Low (3 to 8 ppm) | Matches silicon, reducing stress |
| Surface Flatness | Standard | Ultra Flat | Enables ultra fine lithography |
| Power Efficiency | Standard | Up to 30% Better | Lower electrical loss and heat |
| Package Size | Limited by warping | Scalable | Supports much larger chip designs |
Through the use of glass, manufacturers can integrate more than one trillion transistors into a single package by the end of the decade. This leap in technology is essential for sustaining the growth of artificial intelligence and high-speed communication networks.
Strategic Impact on India’s Semiconductor Mission
The establishment of this facility is a significant milestone for the India Semiconductor Mission (ISM), which was launched to build a resilient semiconductor ecosystem in the country. As part of ISM 2.0, which was deepened following the Union Budget 2026 to 2027, the central government provides 50% fiscal support for the capital expenditure of Assembly, Testing, Marking, and Packaging (ATMP) projects.
This project moves India beyond basic assembly into the realm of Advanced Packaging, which is one of the most high value segments of the semiconductor supply chain. By manufacturing glass core substrates domestically, India reduces its reliance on imported components for AI hardware and high performance computing. This strategic shift is expected to attract more fabless design companies and global tech giants to set up operations in the country, further strengthening the “Make in India” initiative.
The investment also aligns with India’s goal of becoming a global electronics manufacturing hub. With the semiconductor market in India projected to reach $63 billion by 2026, projects like the Intel 3DGS facility ensure that the country captures a larger share of the global value chain. The presence of advanced manufacturing capabilities in Odisha will act as a catalyst for the development of a wider ancillary industry, including specialized chemicals, gases, and equipment suppliers.
Odisha’s Growing Semiconductor Ecosystem
Odisha’s success in attracting this massive investment is rooted in the Odisha Semiconductor Manufacturing and Fabless Policy 2023, which aims to build an end to end semiconductor ecosystem by 2030. Under this policy, the state government offers a capital subsidy of 25% to 30%, which is provided in addition to the 50% subsidy from the Central Government. The state also provides significant incentives for power, water, and land, making it one of the most competitive destinations for high technology manufacturing.
Complementing this policy is the O-Chip (Odisha Chip) Program, a flagship initiative designed to support the fabless design ecosystem. The program provides startups and academic institutions with access to expensive Electronic Design Automation (EDA) tools, silicon validation labs, and mentorship. The state has committed ₹200 crore over five years to this program, with a focus on training 500 students annually to create a pipeline of industry ready talent.
Bhubaneswar is rapidly emerging as a preferred destination for semiconductor firms due to its robust infrastructure and proactive governance. The state has already secured other major projects, such as the ₹2,066 crore investment by SiCSem Private Limited for a silicon carbide fabrication plant. With the addition of the Intel and 3DGS facility, Odisha is well on its way to achieving its vision of creating 5,000 high end direct jobs in the semiconductor sector by 2030.
Key Takeaways
- The Government of Odisha signed an MoU with Intel Corporation and 3DGS Inc on May 29, 2026, for a $3.3 billion semiconductor facility.
- The facility will be established in the Bhubaneswar–Khurda region (Info Valley) and will focus on Advanced Packaging Glass Core Substrates.
- The project is expected to create more than 1,800 direct high skilled jobs for engineers and researchers.
- Glass Core Substrates provide superior thermal stability and flatness compared to traditional organic substrates, which is essential for AI and HPC chips.
- The India Semiconductor Mission (ISM) 2.0 provides 50% fiscal support for capital expenditure in semiconductor packaging projects.
- The Odisha Semiconductor Policy 2023 provides an additional 25% to 30% capital subsidy, making the state a major semiconductor hub.
- Intel Corporation was founded in 1968 and is headquartered in Santa Clara, California.
- 3D Glass Solutions Inc. was founded in 2005 and is based in Albuquerque, New Mexico.
