PM Modi Lays Foundation Stone For ₹2,500 Crore Chip Facility In Andhra Pradesh

Prime Minister Narendra Modi on Saturday laid the foundation stone for ASIP Technologies’ semiconductor manufacturing facility at Tarluvada in Visakhapatnam, marking a major step in India’s efforts to expand its semiconductor ecosystem.

The ₹2,500 crore outsourced semiconductor assembly and test (OSAT) project is the first semiconductor manufacturing facility in Andhra Pradesh and South India approved under the India Semiconductor Mission (ISM 1.0). Andhra Pradesh Chief Minister N Chandrababu Naidu joined the foundation ceremony virtually.

Spread across 30 acres, the facility is being developed with an initial investment of more than ₹460 crore and will have the capacity to produce 96 million chips annually. South Korea-based APACT Co. is partnering with ASIP as the technology provider.

The facility will cater to high-growth industries such as artificial intelligence, high-performance computing, data centres and high-speed communication networks. ASIP plans to further expand operations with an additional investment exceeding ₹2,000 crore to enhance advanced semiconductor packaging capabilities.

The project is expected to generate more than 1,000 direct high-skilled employment opportunities and around 1,600 indirect jobs.

Once operational, the facility will begin production using wire-bond and flip-chip ball grid array (BGA) packaging technologies. It will later introduce advanced 2.5D and 3D semiconductor packaging capabilities within two to three years.

Addressing the event, Prime Minister Modi praised Andhra Pradesh’s technology talent and said the state was positioned to play an important role in India’s semiconductor manufacturing growth. He added that the government was committed to supporting the sector as part of the Viksit Bharat vision.

India Semiconductor Mission CEO Amitesh Kumar Sinha described the project as an important contribution to India’s semiconductor ambitions. He said the Visakhapatnam facility represented progress in advanced semiconductor packaging and reflected ISM’s focus on supporting industry growth.

ASIP Managing Director and CEO Venkata Simhadri said the project would strengthen India’s semiconductor capabilities by developing advanced assembly, packaging and testing infrastructure. He highlighted plans for skill development, supply-chain localisation and expansion of Andhra Pradesh’s semiconductor ecosystem.