PM Modi lays foundation stone for ₹2,500 cr ASIP chip facility in Vizag

The Visakhapatnam OSAT facility, being developed with South Korea's APACT, will produce 96 million chips annually and create about 2,600 direct and indirect jobs

Prime Minister Narendra Modi on Saturday laid the foundation stone and unveiled a plaque for ASIP Technologies’ semiconductor manufacturing facility at Tarluvada in Visakhapatnam. The ₹2,500 crore outsourced semiconductor assembly and test (OSAT) project is Andhra Pradesh’s and South India’s first semiconductor manufacturing facility approved under the India Semiconductor Mission (ISM 1.0).

 

N Chandrababu Naidu, chief minister of Andhra Pradesh, joined the Prime Minister virtually for the foundation stone ceremony.

 

The 30-acre facility, being established with an initial investment of more than ₹460 crore, will have an annual production capacity of 96 million chips. South Korea-based APACT Co. is the project’s technology partner. The facility will serve high-growth sectors, including artificial intelligence (AI), high-performance computing, data centres and high-speed communications.

 

 

ASIP also plans to expand the facility with an additional investment of more than ₹2,000 crore to scale up its advanced semiconductor packaging operations. The project is expected to create more than 1,000 direct high-skilled jobs and 1,600 indirect jobs.

 

Once operational, ASIP will begin production using 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.

 

In his address, Modi commended Andhra Pradesh’s information technology talent pool and said the state was now well positioned to lead in semiconductor manufacturing. He said the government was committed to supporting this emerging manufacturing growth story, which was an important part of the Viksit Bharat mission.

 

Amitesh Kumar Sinha, chief executive officer of the India Semiconductor Mission, applauded ASIP for breaking ground on the project, calling it an important contribution to India’s semiconductor mission. He said the advanced semiconductor packaging facility in Visakhapatnam represented a significant step forward and reaffirmed ISM’s commitment to supporting the sector through growth-oriented industry policies.

 

Venkata Simhadri, managing director and chief executive officer of ASIP, said, “The groundbreaking of our Visakhapatnam facility marks a significant milestone for ASIP and our commitment to strengthening India’s semiconductor manufacturing capabilities.

 

“We thank the Government of India, MeitY, the India Semiconductor Mission (ISM) and the Government of Andhra Pradesh for their support and confidence in this project. Together with our partner APACT, we are establishing advanced assembly, packaging and testing capabilities in India, while driving skill development, supply-chain localisation and contributing to the growth of Andhra Pradesh’s semiconductor ecosystem.”

 

Seong Dong Lee, chief executive officer and president of APACT, said, “The semiconductor industry is increasingly looking for resilient and diversified supply chains. Our partnership with ASIP combines Korean technology expertise with India’s engineering talent and manufacturing ambition. We believe this facility will become an important part of India’s Semiconductor Mission and the global semiconductor ecosystem, providing advanced packaging and testing solutions to customers globally.”

 

India currently imports virtually all semiconductor chips used in its electronics industry. The OSAT facility addresses a critical gap in the country’s semiconductor value chain, where packaging and testing account for roughly 30-40 per cent of chip manufacturing costs.

 

The company expects to localise a significant portion of its supply chain over the next three to five years while building partnerships with academic institutions, including the Indian Institute of Technology (IIT) Tirupati and IIT Hyderabad. The facility will also include an in-house semiconductor training centre aimed at developing a skilled workforce for India’s growing semiconductor sector.

 

Sustainability features such as solar power generation and water recycling systems will be integrated into the project, with the aim of establishing a high-standard, environmentally responsible manufacturing operation.