India's semiconductor push gains momentum as Odisha signs chip technology MoU with Intel, 3DGS
New Delhi, May 29
India's semiconductor manufacturing push received another boost after Union Electronics and IT Minister Ashwini Vaishnaw announced on Friday that the Government of Odisha, Intel and 3DGS have signed a Memorandum of Understanding to bring substrate manufacturing technology to India.
Sharing the development on X, Vaishnaw said, "Congratulations to the Govt. of Odisha, Intel and 3DGS on signing an MoU to bring substrate manufacturing technology to India. This will further advance semiconductor ecosystem in India."
The agreement is aimed at strengthening India's semiconductor ecosystem as the country looks to expand domestic chip manufacturing capabilities and build a complete electronics supply chain. Substrate manufacturing is a key part of semiconductor production, as substrates help connect and support semiconductor chips used in electronic devices.
The development comes weeks after the Union Cabinet approved two semiconductor projects under the India Semiconductor Mission (ISM). The approved projects include the country's first commercial Mini/Micro-LED display facility based on Gallium Nitride (GaN) technology and a semiconductor packaging facility in Gujarat. Together, the two projects involve investments of around Rs 3,936 crore and are expected to create employment for 2,230 skilled professionals.
The latest MoU also aligns with the Centre's larger semiconductor roadmap announced earlier this year. In March, Vaishnaw had said that four semiconductor plants are expected to be ready in India by 2026, while two more plants are planned for 2027. He had also stated that India's first fabrication unit in Dholera is likely to be operational by 2028.
The minister had then said the semiconductor programme is being backed by the development of machinery, chemicals, gases and testing infrastructure. "Our approach is design in India and make in India," he had said, while adding that India aims to become one of the top six semiconductor nations by 2032 and among the top three by 2047.
— ANI
Reader Comments
While this MoU sounds promising, I hope we don't just become an assembly hub for foreign companies. Need to focus on R&D and design as well. The 'Design in India' part of the minister's statement is crucial - we need more investment in original chip design capabilities.
Finally some concrete steps! The 2026-2027 timeline for the first fabs is aggressive but doable. India has the talent pool from IITs and NITs - just need proper infrastructure and consistent policy support. Also, the Rs 3,936 crore investment for 2,230 jobs sounds modest, but these are high-skilled positions which is exactly what we need.
The focus on substrate manufacturing is smart - it's a critical upstream component that often gets overlooked. If we can build this ecosystem properly, it will reduce dependence on imports and strengthen supply chain resilience. Kudos to the Odisha government for being proactive! 👏
I'm cautiously optimistic. The semiconductor industry is extremely capital-intensive and requires huge water and power supply. Hope the environmental impact assessments are done properly before setting up these plants. Also, what about intellectual property rights? Need clarity on tech transfer terms with Intel.
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