According to www.ndtvprofit.com, India signed a $3.3 billion semiconductor substrate manufacturing agreement with Intel and US-based 3D Glass Solutions Inc. (3DGS) in Odisha on May 29, 2026. The deal marks one of India’s largest high-technology manufacturing investments to date and was formalized in the presence of Electronics and IT Minister Ashwini Vaishnaw and Odisha Chief Minister Mohan Charan Majhi.
Project Scope and Timeline
The facility will be located in the Bhubaneswar-Khurda region and is scheduled for completion over the next five to six years. It will produce two critical advanced packaging components: glass-core semiconductor substrates and high-density interconnect substrates. These substrates are essential for chip packaging technologies used in AI accelerators, high-performance computing chips, and next-generation mobile processors.
Strategic Context and Industry Positioning
India’s semiconductor ambitions have accelerated since the launch of its $10 billion India Semiconductor Mission (ISM) in December 2021. As of March 2024, the ISM had approved 10 proposals totaling $12.5 billion in proposed investment, though only three — including this Odisha project — involve foreign technology partners at the substrate or fab level. By comparison, Taiwan Semiconductor Manufacturing Company (TSMC) invested $12 billion in its Arizona fab, while Intel’s own $20 billion Ohio fab expansion began construction in 2023. The Odisha project is the first major substrate manufacturing commitment under India’s Production-Linked Incentive (PLI) scheme for semiconductors, which offers incentives covering up to 50% of capital expenditure for eligible projects.
Supply Chain Implications
For global supply chain professionals, the Odisha project directly addresses material-level bottlenecks. Glass-core substrates — historically sourced from Japan’s Nippon Sheet Glass and Germany’s SCHOTT — currently face lead times exceeding 26 weeks for advanced nodes, according to the 2025 Global Semiconductor Supply Chain Report by Gartner. Localizing substrate production reduces dependency on just-in-time air freight from Asia and Europe and shortens the physical distance between Indian OSAT (outsourced semiconductor assembly and test) facilities in Chennai and Bengaluru and upstream substrate suppliers. The facility also aligns with Intel’s broader strategy to diversify its substrate sourcing beyond East Asia: Intel’s 2023 Annual Report disclosed that 87% of its advanced packaging substrates were procured from suppliers headquartered in Taiwan, South Korea, and Japan.
Source: www.ndtvprofit.com
Compiled from international media by the SCI.AI editorial team.
