Union Minister Ashwini Vaishnaw on Friday, 29 May 2026 congratulated the Government of Odisha, Intel, and 3DGS on signing a Memorandum of Understanding to bring substrate manufacturing technology to India, calling it a step that will 'further advance the semiconductor ecosystem in India.'

Context

The tripartite MoU brings together Odisha's state administration, US chipmaker Intel, and 3DGS — a company specialising in glass substrate technology for semiconductor packaging and advanced interconnects. Substrate manufacturing is an upstream capability that enables advanced chip packaging, a segment considered strategically critical as global supply chains diversify away from single-country concentration.

Vaishnaw, who holds the portfolio of Electronics and Information Technology in addition to Railways and Information and Broadcasting, has been a central figure in India's semiconductor push and welcomed the development publicly on X.

Policy Backdrop

The MoU fits squarely within the India Semiconductor Mission (ISM), launched in December 2021 when the Union Cabinet approved an outlay of Rs 76,000 crore to build a domestic chip ecosystem covering design, fabrication, assembly, and substrate technologies. The mission provides financial support and a policy framework intended to make India a viable node in the global semiconductor supply chain.

In 2023-24, the Ministry of Electronics and IT cleared multiple semiconductor and display projects under the Production Linked Incentive scheme, including assembly and packaging units, signalling a phased build-out of the broader value chain. Substrate manufacturing, now anchored partly in Odisha, represents the next layer of that ambition.

Stakeholders and Impact

Odisha has emerged as an unexpected but deliberate destination for electronics and semiconductor-related manufacturing, leveraging state-level industrial policy incentives — including land and power concessions — to complement central fiscal support. The state's inclusion in a deal involving a global name like Intel signals that India's semiconductor strategy is no longer confined to traditional IT hubs such as Bengaluru or Hyderabad.

For Intel, which already operates design and R&D facilities in India, the MoU extends its footprint into manufacturing-adjacent activity under the ISM framework. 3DGS's glass substrate expertise addresses a niche but high-value segment: advanced interconnect substrates that underpin next-generation chip packaging used in AI accelerators and high-performance computing modules. Domestic electronics manufacturers and the broader semiconductor supply chain stand to benefit from reduced import dependence on this input.

What's Next

Analysts and industry stakeholders will watch for further state-level MoUs or central approvals for substrate and packaging projects under the India Semiconductor Mission, as well as any updates in the next semiconductor policy review cycle. The Odisha-Intel-3DGS agreement could serve as a template for similar tripartite arrangements drawing in other states and global chip-supply-chain players.

As India positions itself as an alternative manufacturing hub amid ongoing global chip-supply realignments, the pace at which MoUs translate into operational facilities will be the defining metric of the mission's credibility.