India moved a step closer to building a homegrown chip supply chain as Union Minister Ashwini Vaishnaw and Odisha Chief Minister Mohan Charan Majhi laid the foundation stone for the country’s first 3D glass semiconductor packaging unit in Bhubaneswar. The project, located at Info Valley on the city’s tech corridor, carries a planned investment of ₹1,943 crore with about ₹800 crore in central support, and targets completion by 2028. Officials say the unit will serve fast-growing needs in AI, 5G, and defence while creating thousands of jobs.
“India advanced its semiconductor push as Ashwini Vaishnaw and Mohan Charan Majhi laid the foundation stone for the country’s first 3D glass semiconductor packaging unit at Info Valley, Bhubaneswar, with an investment of ₹1,943 crore and central support of about ₹800 crore.”
Why This Move Matters
Semiconductor capacity is now a national priority. Governments worldwide are racing to secure chip production after supply shocks during the pandemic. India has aimed to reduce its import bill and build local strength in areas like chip assembly, packaging, and testing. The Bhubaneswar project focuses on 3D glass packaging, a technique that improves thermal performance and reliability of advanced chips used in data centers, telecom, and defence electronics.
The plan fits with New Delhi’s broader semiconductor mission launched in 2021. That mission includes subsidies, design-linked incentives, and support for fabs and OSAT/ATMP units. In 2023, Micron announced a major assembly and test facility in Gujarat. Multiple states have since set up electronics clusters to attract suppliers and talent.
Inside the Project
The facility aims to produce 70,000 glass panels and 50 million packaged units each year once it ramps up. Project leaders expect direct employment for more than 2,500 people. The site at Info Valley gives it proximity to an emerging engineering base and universities in Odisha.
- Total investment: ₹1,943 crore
- Central support: ~₹800 crore
- Target start: By 2028
- Annual capacity: 70,000 glass panels and 50 million units
- Jobs: 2,500+
Officials said the output will feed segments that are scaling quickly, including AI accelerators, 5G radios, and secure systems. That demand is forecast to grow at double-digit rates this decade. India’s electronics market already exceeds $150 billion, with rising local production in smartphones and wearables. Advanced packaging can lift value addition and reduce reliance on imports for high-end components.
Voices From the Ground
“The facility, expected by 2028, will produce 70,000 glass panels and 50 million units annually, generate over 2,500 jobs, and strengthen India’s semiconductor ecosystem for AI, 5G, and defence.”
At the ceremony in Bhubaneswar, Ashwini Vaishnaw framed the project as part of a longer pipeline of semiconductor investments, pairing packaging capacity with design talent. Chief Minister Mohan Charan Majhi emphasized the local job impact and the state’s aim to become a key hub for electronics manufacturing.
Skills, Supply Chains, and Risks
Building a packaging unit demands trained technicians, materials science experts, and tight supply chains for glass substrates, chemicals, and tools. India has expanded chip design programs at leading institutes and is backing skill centers in states. Odisha’s technical universities can help fill roles in process engineering and quality control.
Challenges remain. Tool imports face long lead times. Power quality and water supply must meet exacting standards. Industry analysts say strong vendor development and steady policy support will be essential to keep timelines on track and costs viable.
How It Fits Into Strategy
Advanced packaging is a practical entry point for countries seeking a foothold in chips. It offers faster go-to-market compared with full-scale fabs, while still anchoring a network of suppliers and service firms. India’s plan mirrors moves by the U.S., Japan, and Europe to fund packaging alongside silicon fabrication.
For buyers, local packaging can shorten delivery cycles and improve security for sensitive hardware. Defence and telecom firms stand to gain from trusted manufacturing within national borders. Over time, success here could support deeper investments in substrate manufacturing and, eventually, more complex front-end production.
What Comes Next
The next milestones include vendor selection, equipment orders, and construction. Training programs will need to start early to meet the 2028 goal. Observers will watch for supply agreements with AI and 5G device makers, which could help lock in demand and stabilize production.
The Bhubaneswar unit signals a practical step for India’s chip ambitions. If the project hits its targets, it can boost local value addition and build confidence for larger bets. The focus now shifts to execution, workforce readiness, and reliable utilities. A steady path on these fronts could turn this site into a key link in India’s semiconductor chain.
