Odisha Chief Minister Mohan Charan Majhi on Friday, 29 May 2026 announced the signing of a Memorandum of Understanding with Intel Corporation and 3DGS Inc. for the establishment of an Advanced Packaging Glass Core Substrate Manufacturing Facility in the Bhubaneswar–Khurda region, marking a significant step in India's semiconductor manufacturing push.

Context

Posting on X, CM Majhi described the development as 'a landmark step towards strengthening India's semiconductor ecosystem and positioning Odisha as a hub for next-generation technology manufacturing.' The MoU brings a globally significant chip-packaging technology — glass core substrate manufacturing — to the state for the first time. Advanced packaging is widely regarded as the next frontier in semiconductor production, enabling faster, smaller and more energy-efficient chips.

The Bhubaneswar–Khurda corridor has been progressively designated for electronics and advanced manufacturing clusters, making it the natural anchor for this investment. The facility is expected to generate high-skilled employment for Odisha's youth and draw ancillary industries into the region.

Policy Backdrop

The announcement is rooted in the India Semiconductor Mission (ISM), launched in 2021 under the Ministry of Electronics and Information Technology (MeitY) to build domestic capacity in chip design, fabrication and packaging with up to 50 per cent fiscal support from the central government. The mission has since catalysed investments across multiple states, with Micron Technology's assembly and test facility in Sanand, Gujarat — announced in 2023 — serving as the first major milestone.

The Production Linked Incentive (PLI) scheme for IT hardware and semiconductors, expanded in 2022–23, has further incentivised global manufacturers to evaluate Indian states as viable manufacturing destinations. Odisha's MoU with Intel and 3DGS Inc. represents the latest and easternmost node in this expanding national semiconductor map.

CM Majhi credited the investment to the vision of Prime Minister Narendra Modi and the support of Union Minister Ashwini Vaishnaw, who oversees semiconductor policy implementation as head of MeitY, framing it as a product of the 'double engine government' model of coordinated central-state action.

Stakeholders and Impact

For Odisha, the facility signals a structural shift away from the state's traditional reliance on mining, steel and aluminium toward high-value knowledge-driven industries. Young engineers and technically skilled workers stand to be the primary beneficiaries of the employment opportunities the plant is expected to generate. Ancillary sectors — precision components, logistics, specialised chemicals — are also likely to develop around the core facility.

For Intel Corporation, which has been deepening its foundry and packaging partnerships globally, a presence in Bhubaneswar aligns with its strategy to diversify manufacturing geography beyond the United States, Europe and East Asia. 3DGS Inc., a specialist in glass core substrate technology, brings the advanced packaging expertise central to the project's technical proposition.

At the national level, the MoU strengthens India's case as a credible alternative in global semiconductor supply chains at a time when governments worldwide are incentivising chip-manufacturing diversification.

What's Next

The immediate milestones will include submission of a detailed project report to MeitY, land acquisition processes in Khurda, and the formalisation of vendor and OSAT (Outsourced Semiconductor Assembly and Test) tie-ups. Industry observers expect these steps to unfold over the next 12 to 18 months. How swiftly the state government clears regulatory and land-related hurdles will determine whether Odisha can convert this MoU into an operational facility ahead of competing regional destinations. If the project reaches production scale, it could position Bhubaneswar as eastern India's first significant node in the global semiconductor value chain.