Intel, 3DGS sign $3.3-billion Odisha semiconductor MoU

New Delhi: Chip giant Intel, Odisha government and US-based 3D Glass Solutions (3DGS) signed a memorandum of understanding to expand substrate manufacturing technology in India with an investment of $3.3 billion, one of the highest in hi-tech manufacturing in India.

Electronics and information technology minister Ashwini Vaishnaw said the investment will further advance the semiconductor ecosystem in India. Odisha chief minister Mohan Charan Majhi and Intel CEO Lip-Bu Tan also participated in Friday's signing.

To be located in Bhubaneswar-Khurda region, the proposed facility will be set up in phases over five-six years and is expected to generate more than 1,800 direct high-skilled jobs.


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It will focus on advanced packaging of glass core substrates, high-density interconnect substrates (HDI) and associated semiconductor technologies. While substrates connect microchips to motherboards, these advanced foundations allow for more computing power and prevent warping. Glass core substrates are increasingly sought after as semiconductors use heavy, multi-chip architectures like AI processors while HDI substrates allow complex chips to communicate with shorter electrical paths.

Officials pointed to significant knowledge transfer committed by Intel, which will support the facility with technology know-how and process expertise. The investment is also expected to help develop a local supplier ecosystem and ancillary industries and export-oriented manufacturing. Creation of skilled employment and technical workforce development in Odisha is also a target.

Officials said the project will dovetail with 3DGS and Intel's existing presence in Odisha. Heterogeneous Integrated Packaging Solutions Pvt Ltd (HIPSPL), a subsidiary of high-tech manufacturing firm 3DGS, is setting up a vertically integrated advanced packaging and embedded glass substrate unit at a cost of ₹1,943 crore.

Ground-breaking for the HIPSPL plant took place in April. It has a 11-13% equity investment each from Intel, aerospace and defence contractor Lockheed Martin and Applied Materials, as well as venture capital funds. India's first compound semiconductor fabrication unit is also being established in Odisha.

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Friday's announcement is not classified as an official approved project under the India Semiconductor Mission as of now, an official said. Potential inclusion of the investment under mission will have to be deliberated once the government announces ISM 2.0, he added.