Prime Minister Narendra Modi today virtually laid the foundation stone and unveiled the plaque for ASIP Technologies’ advanced semiconductor manufacturing facility at Tarluvada in Visakhapatnam, marking a major milestone in India’s drive to build a domestic semiconductor ecosystem. With a total planned investment of ₹2,500 crore, the 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 Prime Minister virtually for the foundation stone ceremony. Senior government officials, industry leaders and global partners, including Amitesh Kumar Sinha, CEO, India Semiconductor Mission; Bhaskar Katamneni, Secretary, IT, Electronics & Communication, Government of Andhra Pradesh; and Mallavarapu Surya Teja, Special Secretary, ITE & C, Government of Andhra Pradesh, attended the event.
Spread across 30 acres, the facility is being established with an initial investment exceeding ₹460 crore, with APACT Co., South Korea, serving as the technology partner. The plant will have an annual production capacity of 96 million semiconductor chips and is designed to serve high-growth industries such as artificial intelligence, high-performance computing, data centres and high-speed communications.
ASIP plans to invest an additional ₹2,000 crore to expand its advanced semiconductor packaging operations. The facility is expected to generate more than 1,000 direct high-skilled jobs and approximately 1,600 indirect employment opportunities, while supporting the development of a broader semiconductor supply chain in the region.
Production will initially focus on wire-bond and Flip-Chip Ball Grid Array packaging technologies, followed by the introduction of advanced 2.5D and 3D packaging capabilities within two to three years. The facility is also expected to strengthen domestic capabilities in a segment that represents a significant share of semiconductor manufacturing costs.
Venkata Simhadri, Managing Director and CEO of ASIP, said the project represents an important step towards strengthening India’s semiconductor manufacturing capabilities. He thanked the Government of India, MeitY, ISM and the Government of Andhra Pradesh for their support, while highlighting plans to promote skill development, supply chain localisation and ecosystem growth.
The company plans to localise a significant portion of its supply chain over the next three to five years and establish partnerships with academic institutions, including IIT Tirupati and IIT Hyderabad. An in-house semiconductor training centre will support workforce development, while solar power generation and water recycling systems will contribute to sustainable manufacturing operations.
ASIP (Advanced System in Package Technologies) is a semiconductor packaging and testing company focused on developing world-class Outsourced Semiconductor Assembly and Test (OSAT) capabilities in India. Supported by global industry expertise, advanced technologies and strategic international partnerships, the company is establishing a state-of-the-art semiconductor packaging and testing facility to serve leading semiconductor companies across North America, Asia and other international markets. ASIP is committed to strengthening India’s position in the global semiconductor value chain through advanced packaging and testing solutions, workforce development, technological innovation and sustainable industrial growth.
