Prime Minister Narendra Modi has virtually laid the foundation stone for ASIP Technologies’ ₹2,500 crore semiconductor manufacturing facility at Tarluvada in Visakhapatnam, marking Andhra Pradesh’s and South India’s first OSAT plant under the India Semiconductor Mission.

The project will produce 96 million chips annually, create over 2,600 jobs, and position Andhra Pradesh as a key hub in India’s semiconductor ecosystem.

The ground breaking ceremony was attended by Chief Minister N. Chandrababu Naidu, India Semiconductor Mission CEO Amitesh Kumar Sinha, senior officials, industry leaders, and global partners. The event highlighted the strategic importance of the facility in reducing India’s dependence on imported chips and strengthening the domestic semiconductor value chain.

The facility is spread across 30 acres and is being established with an initial investment of over ₹460 crore. South Korea-based APACT Co. is the technology partner, bringing advanced expertise to support India’s ambitions in semiconductor packaging and testing.

The collaboration is expected to combine Korean technological strengths with India’s engineering talent and manufacturing capabilities.

The plant will serve high-growth sectors such as artificial intelligence, high-performance computing, data centres, and high-speed communications. It will initially commence production using wire-bond and Flip-Chip Ball Grid Array packaging technologies. Within two to three years, advanced 2.5D and 3D packaging capabilities will be introduced, aligning with global trends in semiconductor innovation.

ASIP Technologies plans to expand the facility with an additional investment of over ₹2,000 crore to scale up advanced semiconductor packaging operations. This expansion will further enhance India’s capacity to provide cutting-edge solutions to global customers and strengthen its position in the semiconductor supply chain.

The project is expected to generate more than 1,000 direct high-skilled jobs and 1,600 indirect jobs. An in-house semiconductor training centre will be established to develop a skilled workforce, with partnerships planned with institutions such as IIT-Tirupati and IIT-Hyderabad. This will ensure a steady pipeline of talent for the sector while promoting skill development and research collaboration.

ASIP Managing Director and CEO Venkata Simhadri emphasised that the partnership with APACT would help establish advanced assembly, packaging, and testing capabilities in India. He noted that the project would also promote supply chain localisation and contribute to the growth of Andhra Pradesh’s semiconductor ecosystem.

APACT President and CEO Seong Dong Lee highlighted the importance of resilient and diversified supply chains in the global semiconductor industry. He said the partnership with ASIP would strengthen India’s Semiconductor Mission by providing advanced packaging and testing solutions to international customers.

Prime Minister Modi praised Andhra Pradesh’s strong IT talent pool and said the state was now well positioned to lead in semiconductor manufacturing. He reaffirmed the Centre’s commitment to supporting this emerging sector as part of the Viksit Bharat mission, describing the facility as a crucial step in India’s journey towards becoming a global semiconductor hub.

India currently imports almost all the semiconductor chips used by its electronics industry. Packaging and testing account for about 30% to 40% of a chip’s manufacturing cost, making the OSAT facility a vital addition to the country’s semiconductor value chain. The company expects to localise a significant part of its supply chain over the next three to five years, thereby reducing reliance on imports.

Sustainability measures will also be integrated into the project, including solar power generation and water recycling systems, ensuring that the facility operates as an environmentally responsible manufacturing unit. This aligns with India’s broader push for sustainable industrial growth.

The establishment of the ASIP Technologies facility marks a significant milestone in India’s semiconductor mission. It not only strengthens the country’s technological capabilities but also enhances its strategic resilience in a sector critical to national security, economic growth, and global competitiveness.

Agencies