Odisha's Semiconductor Leap: 3DGS Unveils Rs 1,943 Cr Chip Plant

Odisha has officially embarked on a transformative journey into the high-stakes world of advanced semiconductor manufacturing with the groundbreaking of India's first vertically integrated advanced packaging and embedded glass substrate ATMP (Assembly, Test, Marking, and Packaging) facility. Spearheaded by US-based 3D Glass Solutions (3DGS) through its wholly-owned Indian subsidiary, Heterogenous Integration Packaging Solutions Pvt Ltd (HIPSPL), this ambitious project in Info Valley, Khordha district, represents a significant stride in the nation's technological self-reliance.

The facility, poised to become a cornerstone of India's burgeoning semiconductor ecosystem, involves a substantial investment of Rs 1,943.53 crore. This includes an eligible capital expenditure of Rs 1,598.33 crore, bolstered by significant central fiscal support of Rs 799 crore and an additional state contribution of Rs 399.5 crore. The project is currently equity-funded, with no external debt envisioned at this initial stage, underscoring a robust financial foundation.

Pioneering Glass-Ceramic Technology

At the heart of 3DGS's offering is its proprietary glass-ceramic packaging technology, built on the innovative APEX platform. This technology is protected by over 100 patents and 31 active patent families, covering everything from materials and manufacturing processes to device design and system-level integration. It delivers distinct advantages over traditional silicon-based packaging, including:

• Lower Dielectric Constant: Ranging from 3-6 compared to silicon's 11.7, enhancing electrical performance.
• Improved Signal Integrity: Critical for high-frequency applications (1-200 GHz).
• Superior Thermal Stability: Ensuring reliable operation under varying conditions.
• Reduced Transmission Losses: Optimizing power efficiency and signal clarity.

The product portfolio from this facility will include advanced components such as glass FCBGA substrates and packages, RF and AiP SiP modules, glass interposers with embedded passives and silicon bridges, and high-value 3DHI modules. These are crucial for high-growth sectors like data centres, high-performance computing (HPC), artificial intelligence (AI), machine learning, 5G/6G communication systems, photonics, automotive radar, and defence electronics.

A Vertically Integrated Manufacturing Powerhouse

Unlike conventional OSAT (Outsourced Semiconductor Assembly and Test) models, the Khordha facility is designed as a vertically integrated operation, combining substrate manufacturing, assembly, and advanced packaging within a single site. This comprehensive approach is segmented into three key manufacturing units:

• Glass Panel Processing Unit: With an installed capacity of 5,800 panels/month (510 mm x 515 mm), this unit will produce embedded glass substrates and interposers. It marks a significant transition from 3DGS's existing wafer-based processes to a panel-level approach, promising higher throughput and cost efficiencies.
• Assembly and Packaging Unit: This unit will initially produce approximately 4.2 million advanced packages/month, including Glass FCBGA, RF SiP, and AiP modules. It is designed to process both internally manufactured glass substrates and externally sourced organic substrates, with a strategic shift towards glass-based packaging as the ecosystem matures.
• 3DHI Module Unit: Specializing in high-value, low-volume applications, this unit will have a capacity of 13,330 modules per year. It focuses on stacking multiple glass layers with integrated semiconductor dies (CMOS, GaN, RF components, passives) for critical sectors like aerospace, defence, and high-frequency communication systems.

Odisha's Strategic Advantage and Economic Catalyst

The selection of Odisha for this pioneering venture underscores the state's growing appeal as an investment destination for high-tech manufacturing. Chief Minister Mohan Charan Majhi highlighted Odisha's abundant natural resources, world-class infrastructure, a skilled youth workforce, robust connectivity, and responsive governance as key factors. He emphasized that Odisha is not just a location but a strategic partner in India's journey towards technological leadership, positioning the state as an ideal destination for the global semiconductor industry.

Beyond the direct employment of approximately 2,500 individuals, this project is poised to catalyze a robust ecosystem for Micro, Small, and Medium Enterprises (MSMEs) and downstream industries. The demand for precision engineering, specialized components, industrial gases, logistics, and maintenance services will create significant opportunities for local businesses. Furthermore, it will necessitate the development of a highly skilled workforce, prompting educational institutions and vocational training centres to align their curricula with the demands of advanced semiconductor manufacturing, thereby fostering a talent pipeline for future growth.

Union Electronics and IT Minister Ashwini Vaishnaw echoed this sentiment, envisioning Odisha as an emerging IT hub and a launchpad for eastern India's industrialization. He noted that the technology deployed by 3DGS is expected to define the future of the semiconductor industry globally, making Odisha a critical player in this evolution. The state has already attracted investments exceeding Rs 10,000 crore in the semiconductor sector, with companies like RIR Power Electronics and SiCSem establishing their presence, further solidifying Odisha's position.

Future Outlook and National Significance

This facility is a cornerstone in India's ambition for self-reliance in critical technologies, aligning perfectly with emerging trends in heterogeneous integration, chiplet architectures, and high-density interconnects required for next-generation computing systems. It is strategically positioned to support domestic requirements in vital sectors such as defence, space, and telecommunications, contributing significantly to the 'Atmanirbhar Bharat' vision.

Site-related activities, including soil testing and preliminary engineering, have been completed, with applications for environmental clearance, SEZ status, and building permits currently in progress. Engineering design and EPC planning are being undertaken in collaboration with Tata Consulting, and equipment vendor discussions are ongoing. The project has already demonstrated strong market traction, with Letters of Intent (LoI) received from multiple global customers, including significant commitments from Marvell and Intel, and additional demand from Applied Materials, Xscape Photonics, AAYUNA Inc., and Xpeedic, collectively exceeding 100 per cent of the proposed installed capacity. Commercial production is slated to commence by August 2028, with volume production targeted by August 2030.

Now onwards, actual value creation has started.