PM lays foundation for Rs 2,500-cr semiconductor unit in Visakhapatnam
Visakhapatnam, Aug 1 (TNT): Prime Minister Narendra Modi on Saturday virtually laid the foundation stone for ASIP Technologies’ ₹2,500-crore semiconductor manufacturing facility at Tarluvada in Visakhapatnam, the first Outsourced Semiconductor Assembly and Test (OSAT) facility in Andhra Pradesh and South India approved under the India Semiconductor Mission (ISM 1.0).
The Prime Minister also unveiled the project plaque during the virtual ceremony, which was joined by Andhra Pradesh Chief Minister N. Chandrababu Naidu.
The event was attended by India Semiconductor Mission (ISM) CEO Amitesh Kumar Sinha, Andhra Pradesh IT, Electronics and Communications Secretary Bhaskar Katamneni, senior government officials, industry representatives and global partners.
The 30-acre facility is being developed with an initial investment of over ₹460 crore in partnership with South Korea-based APACT Co. as the technology partner.
It will have an annual production capacity of 96 million semiconductor chips for sectors including artificial intelligence, high-performance computing, data centres and high-speed communications.
ASIP said it plans to invest an additional ₹2,000 crore in future phases to expand its advanced semiconductor packaging operations.
The project is expected to generate over 1,000 direct high-skilled jobs and around 1,600 indirect employment opportunities.
Production will initially commence with wire-bond and Flip-Chip Ball Grid Array (BGA) packaging technologies, followed by advanced 2.5D and 3D packaging capabilities within two to three years.
Addressing the gathering, Modi said Andhra Pradesh, which has established itself as a hub for software and IT talent, is now poised to emerge as a leader in semiconductor manufacturing.
He said the Centre would extend all support to strengthen the sector as part of the Viksit Bharat vision.
Amitesh Kumar Sinha described the project as a significant step towards strengthening India’s semiconductor ecosystem and reaffirmed the Centre’s commitment to supporting the industry through growth-oriented policies.
ASIP Managing Director and CEO Venkata Simhadri said the facility would strengthen India’s semiconductor manufacturing capabilities while promoting advanced assembly, packaging and testing, skill development and supply chain localisation.
APACT CEO Seong Dong Lee said the partnership combines South Korea’s semiconductor expertise with India’s engineering talent and manufacturing capabilities, adding that the facility would support both India’s Semiconductor Mission and the global semiconductor supply chain.
According to the company, the project addresses a key gap in India’s semiconductor value chain, where packaging and testing account for nearly 30-40 per cent of chip manufacturing costs.
ASIP said it plans to localise a significant portion of its supply chain over the next three to five years and collaborate with institutions such as IIT Tirupati and IIT Hyderabad for research and workforce development.
The facility will also house an in-house semiconductor training centre and incorporate sustainability measures, including solar power generation and water recycling systems, to support environmentally responsible manufacturing.
TNT KM
