Modi Places Stone for South India’s First Semiconductor Facility in Vizag

 VISAKHAPATNAM: Visakhapatnam is set to make history with Prime Minister Narendra Modi virtually laying the foundation stone on Saturday for the establishment of South India’s first semiconductor manufacturing facility at Tarluvada village in Anandapuram mandal of Visakhapatnam district.

The project has been approved under the India Semiconductor Mission (ISM 1.0) with a landmark investment of ₹2,500 crore. It positions Andhra Pradesh at the forefront of India’s semiconductor ambitions.

The Prime Minister called the facility a transformative step in strengthening the domestic electronics manufacturing base. “Andhra Pradesh, which has emerged as a major information technology hub, is now well placed to play a key role in semiconductor manufacturing,” Modi said, assuring continued support from the centre to bolster the sector.

The Outsourced Semiconductor Assembly and Test (OSAT) facility is being developed by Advanced System in Package Technologies (ASIP) Pvt. Ltd. in collaboration with South Korea’s APACT Co. Ltd. The project will be executed in phases on a 30‑acre site, with an initial investment of ₹460 crore, followed by an additional ₹2,000 crore in the next phase. Once operational, the facility will have the capacity to package and test about 96 million semiconductor chips annually.

The chips produced will cater to critical sectors, such as artificial intelligence, high‑performance computing, data centres, and high‑speed communications.

Production will begin with wire‑bond and flip‑chip Ball Grid Array (BGA) packaging technologies, before advancing to 2.5D and 3D packaging within two to three years. The project is expected to generate more than 1,000 direct skilled jobs and around 1,600 indirect jobs in the region.

ASIP managing director and CEO Venkata Simhadri said the project would help build India’s semiconductor packaging and testing ecosystem. “Together with our partner APACT, we are establishing advanced assembly, packaging, and testing capabilities in India, while driving skill development and supply chain localisation, which will contribute to the growth of Andhra Pradesh’s semiconductor ecosystem,” he explained.

APACT president and CEO Seong Dong Lee underlined that the partnership combines Korean technology expertise with India’s engineering strength, making the facility a vital part of both India’s Semiconductor Mission and the global semiconductor supply chain.

The Tarluvada facility will include a semiconductor training centre. It will collaborate with institutions such as IIT Tirupati and IIT Hyderabad for research, skill development, and workforce training. Sustainability features like solar power generation and water recycling systems will be integrated into the project.

Chief Minister N. Chandrababu joined the Prime Minister virtually during the ceremony, underscoring the state government’s support for the initiative.

Those present included India Semiconductor Mission CEO Amitesh Kumar Sinha, IT and Electronics secretary Bhaskar Katamneni, senior officials, and industry representatives.