Hyderabad: Prime Minister Narendra Modi on Saturday virtually laid the foundation stone for ASIP Technologies’ advanced semiconductor manufacturing facility at Tarluvada in Visakhapatnam, marking the first semiconductor plant in South India approved under the India Semiconductor Mission (ISM).The ₹2,500-crore outsourced semiconductor assembly and test (OSAT) project is also Andhra Pradesh’s first ISM-approved semiconductor manufacturing facility.The 30-acre facility is being set up with an initial investment of more than ₹460 crore in partnership with South Korea’s APACT, which will provide technology support.ASIP said the plant will have the capacity to produce 96 million chips annually and will serve demand from artificial intelligence, high-performance computing, data centres and high-speed communications.Once operational, ASIP will commence production with wire-bond and Flip-Chip Ball Grid Array (BGA) packaging technologies, followed by the introduction of advanced 2.5D and 3D packaging capabilities within two to three years.India currently imports virtually all chips used by its electronics industry, making packaging and testing a critical gap in the domestic value chain. These stages typically account for 30% to 40% of a chip’s manufacturing cost.The company said it plans to invest more than ₹2,000 crore in a subsequent expansion to scale its advanced packaging operations. The project is expected to create more than 1,000 direct highly skilled jobs and about 1,600 indirect jobs.ASIP said it plans to localise a significant share of its supply chain over the next three to five years and integrate solar power and water-recycling systems into the plant’s sustainable manufacturing operations.The company also plans an in-house semiconductor training centre and partnerships with institutions including IIT Tirupati and IIT Hyderabad to build a skilled workforce.Unveiling the project plaque virtually from the newly inaugurated Alluri Sitarama Raju International Airport in Bhogapuram, PM said after establishing its dominance in the IT and software sector, AP is now well poised to lead in the semiconductor manufacturing sector as well with the new semiconductor facility.He said the NDA govt is committed to backing AP’s emerging manufacturing growth story by creating a growth ecosystem under the leadership of AP chief minister N Chandrababu Naidu as part of the Viksit Bharat mission.He said apart from mega investments such as Google’s $15 billion commitment for setting up AI and cloud infrastructure in Vizag, other global companies too are exploring investment opportunities in AP.PM said AP’s industrial growth story is not just restricted to digital technologies but is also poised for growth with the upcoming mega pharma park in Nakkapalli and an over Rs 5 lakh crore investment in Rayalaseema in the renewable energy space.While AP CM also joined the ceremony virtually from the new airport, ISM CEO Amitesh Kumar Sinha, AP ITE&C secretary Bhaskar Katamneni, senior govt officials, industry executives and global partners attended the event.Sinha described the project as a significant step for India’s semiconductor mission and said ISM would continue to support industry through growth-oriented policies.ASIP managing director and CEO Venkata Simhadri said the project would strengthen India’s assembly, packaging and testing capabilities while promoting skill development and supply-chain localisation.APACT president and CEO Seong Dong Lee said the partnership combines Korean technology expertise with India’s engineering talent and manufacturing ambition.In a statement, India Electronics and Semiconductor Association (IESA) president Ashok Chandak said the upcoming ASIP OSAT facility will cultivate a robust ancillary ecosystem and generate highly skilled employment opportunities, facilitating the expansion of semiconductor manufacturing in AP.
