In a major boost to India’s semiconductor industry, the Odisha government recently inked a deal with Intel and US-based 3DGS. Aimed at bringing advanced substrate manufacturing technology to the country, the project estimated at around $3.3 billion, will set up an advanced packaging glass-core substrate manufacturing facility in the Bhubaneswar-Khurda region of Odisha. The proposed unit will focus on advanced packaging glass-core substrates, high-density interconnect substrates and related semiconductor technologies.
For the unversed, substrates are a critical component in semiconductor packaging. It helps with connecting and supporting semiconductor chips used in electronic devices. Industry executives have often described substrate manufacturing as one of the missing links in India’s semiconductor value chain.
Earlier, 3DGS, through its Indian subsidiary Heterogeneous Integration Packaging Solutions (HIPS), announced its plan to set up India’s first advanced 3D semiconductor packaging facility at Info Valley, Bhubaneswar. The project, valued at about ₹1,943 crore, will manufacture advanced 3D heterogeneous integration modules for AI, high-performance computing, defence electronics, photonics and telecom applications.
Meanwhile, the Union Cabinet has also approved a ₹2,066-crore project by SiCSem Pvt Ltd to establish India’s first commercial silicon carbide (SiC) semiconductor fabrication facility in Odisha.
Silicon carbide chips are critical for electric vehicles, renewable energy systems, railways, aerospace and defence applications.
These investments mark a significant milestone for a state traditionally known for its mineral wealth and metallurgical industries.
With the global semiconductor market expected to exceed $1 trillion by 2030, driven by the explosive growth of artificial intelligence, electric vehicles, telecommunications, renewable energy and advanced electronics, Odisha becoming a centre for advanced packaging and substrate manufacturing—a segment currently dominated by Taiwan, South Korea, Japan and China, is a boost to India’s ‘atmanirbhar’ campaign and the Semiconductor Mission launched by the Union government with a commitment of ₹76,000 crore to build a domestic semiconductor ecosystem.
Why Odisha has emerged as a strong contender
Odisha’s Semiconductor Manufacturing and Fabless Policy offer a range of incentives for chip fabrication, design firms, research institutions and component manufacturers. More importantly, the state has focused on building an ecosystem rather than merely attracting individual projects.
For instance, the silicon carbide fabrication facility will cater to sectors such as electric mobility, renewable energy, defence electronics and industrial automation. Silicon carbide chips are increasingly viewed as the future of power electronics because they are more energy-efficient and can operate under higher temperatures and voltages than traditional silicon-based semiconductors. By entering this niche segment, Odisha is targeting a high-growth market with significant global demand.
The proposed advanced packaging and substrate manufacturing facilities are equally important. Globally, semiconductor manufacturing is no longer confined to fabrication alone. Packaging, testing, design and materials now account for a substantial portion of value creation.
Infrastructure also works in Odisha’s favour. The state offers comparatively affordable industrial land, improving logistics networks, robust power availability and access to ports such as Paradip and Dhamra. As semiconductor companies increasingly seek cost-efficient locations beyond traditional technology clusters, Odisha’s advantages become more compelling.
Importantly, the state’s growing emphasis on research and skill development is another encouraging sign. Institutions such as IIT Bhubaneswar, NIT Rourkela, IIIT Bhubaneswar and other engineering colleges are being integrated into the semiconductor ecosystem through specialised courses, research initiatives and industry partnerships. The proposed Centre of Excellence for semiconductor materials and devices further strengthens this foundation.
The semiconductor industry, often described as the backbone of the digital economy could redefine Odisha’s industrial identity for the coming decades.
Having said that, it needs to be understood that as building a fabrication ecosystem requires uninterrupted power, ultra-pure water, specialised suppliers, precision logistics and highly skilled manpower, execution will be the key test. Land acquisition, infrastructure readiness, regulatory clearances, workforce training and investor confidence must move in tandem.
If it succeeds, the state may soon be known not only for the minerals beneath its soil but also for the microchips powering the world’s future.
