Intel Expands Advanced Packaging Operations; Construction Begins on India’s First 3D Chip Packaging Plant

Intel is continuing to expand its advanced packaging operations. According to reports, a company backed by Intel Capital is set to begin construction in India on the country’s first advanced 3D chip packaging plant. The Indian Express reported that the project is being developed by the U.S.-based company 3D Glass Solutions (3DGS). Intel has invested in the project through its wholly-owned Indian subsidiary, Heterogeneous Integrated Packaging Solutions, and construction of the plant has officially begun.

According to India’s Pramaya News Agency, Intel CEO Chen Liwu attended the groundbreaking ceremony via video link and expressed gratitude for the leadership of Indian Prime Minister Narendra Modi. He also highlighted the developmental advantages of Odisha, noting that the region’s stable infrastructure—including power and water resources—along with its skilled technical workforce, are key factors supporting the growth of advanced manufacturing.

3DGS is regarded as a technology pioneer in the global advanced packaging sector. India’s Asian News International (ANI) reported that the company’s investors include Intel and the U.S. defense and aerospace firm Lockheed Martin. Notably, according to Reuters, since Chen Liwu assumed the role of Intel CEO, Intel Capital has invested a cumulative total of $8 million in 3DGS through two rounds of financing. Following the completion of the second round of financing, Walden International, led by Chen Liwu, holds a 9.6% stake in the company.

Looking at Intel’s overall advanced packaging strategy, Malaysia’s financial daily *The Edge* reported that Intel’s advanced packaging complex and packaging and testing facility in Malaysia are scheduled to begin full-scale operations later this year.

The Indian Express, citing Orissa Chief Minister Mohan Charan Majhi, reported that the total investment in the packaging plant amounts to 19.34 billion rupees, and the relevant plan was approved last year under the Indian Semiconductor Mission (ISM).

Regarding production capacity, the Indian edtech news site Edexlive reported that the factory is planned to have an annual production capacity of approximately 69,600 glass panel substrates, 50 million packaged devices, and 13,200 3D heterogeneous integrated modules. The products will be applied in multiple fields, including defense, high-performance computing, artificial intelligence, radio frequency, automotive electronics, as well as photonics and co-packaged optics.

Meanwhile, Indian tech media outlet ETtech noted that the facility will adopt a vertically integrated operational model, consolidating substrate manufacturing, chip assembly, and advanced packaging within a single site—a departure from the traditional outsourced semiconductor assembly and test (OSAT) model. The project plans to implement core technologies such as glass interposers and 3D heterogeneous integrated modules.

This project is one of two major semiconductor-related investment initiatives approved by the Indian central government for the state of Odisha in 2025. ETtech mentioned that the other project, led by SiCSem Private Limited, will produce silicon carbide devices for applications spanning defense, electric vehicles, rail infrastructure, and renewable energy systems.

India’s Minister of Information Technology revealed that global companies are expected to make further investments in the region. According to ETtech, three additional investment proposals in the electronics and semiconductor sectors are currently in the pipeline. The minister also stated that India is in discussions with major global companies, such as Intel, regarding future investment and cooperation in Odisha.