The Odisha government on Friday, 29 May signed a Memorandum of Understanding with Intel and 3D Glass Solutions (3DGS) of the United States for the establishment of an Advanced Packaging Substrate Manufacturing Facility in Bhubaneswar — described by officials as a first-of-its-kind project in India. The deal is expected to bring in foreign direct investment of nearly $3.3 billion, making it one of the largest semiconductor commitments to any Indian state.

What the Facility Will Do

The proposed facility, to be located in Bhubaneswar in Khordha district, will deploy advanced glass-based substrate technologies and high-density interconnect packaging — components considered critical for artificial intelligence, high-performance computing, telecommunications, and next-generation electronics. The plant will house world-class cleanrooms, fabrication units, testing infrastructure, and dedicated research and development (R&D) facilities.

Intel will serve as the technology partner, contributing process expertise, technology licensing, quality systems, and workforce capability-building support. The project will be implemented in phases, with upstream activities spanning advanced materials, specialty chemicals, and capital equipment manufacturing, and downstream activities covering electronics manufacturing and export-oriented industries.

Jobs and Economic Impact

The initiative is expected to generate nearly 1,800 direct high-skilled jobs, along with a significant number of indirect employment opportunities, according to the official statement. Officials noted that the project aligns with Odisha's 'Vision 2036' roadmap, which identifies high-quality, knowledge-based employment as a key pillar of the state's growth strategy.

On the fiscal side, the facility is projected to boost GST collections, expand state revenues through manufacturing and ancillary industries, and strengthen Odisha's long-term export earnings. The government said the project directly contributes to the state's target of becoming a $500 billion economy by 2036 and a $1.5 trillion economy by 2047.

Strategic Significance for India's Semiconductor Push

Advanced packaging is widely regarded as one of the most strategic and fast-evolving segments of the global semiconductor value chain. India has been accelerating efforts to build domestic semiconductor capacity under the Centre's India Semiconductor Mission, and Odisha's MoU with Intel and 3DGS adds a specialised glass-substrate dimension that has so far been absent from the country's manufacturing landscape.

This comes amid intensifying global competition for semiconductor supply chain diversification, with countries across Southeast Asia and South Asia positioning themselves as alternatives to Taiwan and China. Notably, advanced packaging — rather than chip fabrication — has emerged as the entry point of choice for newer manufacturing destinations, given its lower capital threshold relative to front-end fabs.

Ecosystem and Talent Development

Beyond the facility itself, the project is intended to catalyse a broader semiconductor ecosystem in Odisha, attracting global players through cluster-based industrialisation. The initiative is also expected to strengthen academia-industry partnerships and accelerate skill development, creating what officials described as a 'future-ready talent pipeline' aligned with global semiconductor industry demands.

With this agreement, Odisha positions itself as a serious contender for semiconductor and advanced electronics manufacturing leadership in India, integrating the state into global supply chains and reinforcing its strategic importance in the wider technology economy. The next milestone will be the commencement of phased implementation and the finalisation of land and infrastructure arrangements in Khordha district.