Rs 468 Crore Semiconductor Unit To Come Up In Tirupati EMC

Tirupati:A semiconductor manufacturing unit would come up in Andhra Pradesh. The Union Cabinet has approved a proposal to establish the facility at the Electronic Manufacturing Cluster near the Tirupati international airport.

The project would be implemented by the Advanced System in Package Technologies (ASIP), adding a new segment to the region’s growing electronics base. The unit would be set up with an initial investment of `468 crore and will have the capacity to produce 9.6 crore semiconductor chips each year.

These chips would be supplied for use in mobile devices, set-top boxes, automotive electronic control units and household electronics.

The state government had formally invited ASIP to AP, offering it a package of incentives. Following the company’s consent, the proposal was forwarded to the Centre, which gave its clearance.

According to officials, ASIP plans to increase its total investment to `1,500 crore over time. The state has announced incentives that include a 25 per cent capital subsidy, land at nominal cost, a `1.50 per unit electricity subsidy for five years, exemption from electricity duty for five years, interest subsidy on term loans for five years and full reimbursement of state GST for five years.

Tirupati was designated as an electronics cluster between 2014 and 2019 and has since attracted several large companies. EMC-1 is home to Dixon Technologies and Celkon, while EMC-2 has drawn investments from TCL and Sunny Opotech.

The addition of a semiconductor facility is expected to expand the existing manufacturing ecosystem and support related industries in the region.