Prime Minister Narendra Modi has laid the foundation stone and unveiled the plaque for ASIP Technologies’ semiconductor manufacturing facility at Tarluvada in Visakhapatnam.
The ₹2,500 crore Outsourced Semiconductor Assembly and Test (OSAT) facility is the first semiconductor manufacturing project approved in Andhra Pradesh and South India under the India Semiconductor Mission. This marks a major step in Andhra Pradesh’s entry into India’s semiconductor manufacturing ecosystem.
The foundation ceremony was attended by Andhra Pradesh Chief Minister N. Chandrababu Naidu along with government officials, industry representatives and global technology partners.
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Visakhapatnam Semiconductor Plant to Produce 96 Million Chips Annually
The 30-acre facility is being developed with an initial investment of more than ₹460 crore in partnership with South Korea-based APACT Co., which will serve as the technology partner.
The semiconductor packaging and testing facility will have an annual production capacity of 96 million chips. It will cater to fast-growing technology sectors including artificial intelligence (AI), high-performance computing, data centres and high-speed communication networks.
ASIP Technologies plans to further expand the facility with an additional investment of more than ₹2,000 crore to increase its advanced semiconductor packaging capabilities.
The project is expected to create more than 1,000 direct high-skilled jobs and around 1,600 indirect employment opportunities, supporting the development of a skilled semiconductor workforce in the region.
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India’s Semiconductor Supply Chain Gets a Boost
The facility will initially begin production using wire-bond and Flip-Chip Ball Grid Array (FCBGA) packaging technologies. In contrast, advanced 2.5D and 3D semiconductor packaging capabilities are expected to be introduced within two to three years.
ASIP Technologies Managing Director and Chief Executive Officer Venkata Simhadri said the partnership with APACT would help build advanced semiconductor assembly, packaging and testing capabilities in India while supporting skill development, supply chain localisation and Andhra Pradesh’s semiconductor ecosystem.
India currently imports almost all semiconductor chips used by its electronics industry.
The OSAT facility addresses a critical gap in the semiconductor value chain, where packaging and testing contribute nearly 30% to 40% of total chip manufacturing costs.
The Visakhapatnam project signals a shift in India’s semiconductor strategy from approvals to actual manufacturing capacity. As OSAT facilities expand, the country’s ability to support AI infrastructure, data centres, telecom networks and advanced electronics manufacturing will increasingly depend on building a complete semiconductor supply chain within India.
Samarjit Kaur is a journalist and communications professional covering technology & emerging digital trends. With a focus on clarity and context, she reports on developments shaping industries and governance. When not reporting, she chooses to plug-in and relax on her playlists and plan her next bucket-list trips!
