Andhra Pradesh has reached a significant milestone in its semiconductor journey with the groundbreaking ceremony of the ASIP Technologies semiconductor facility in Visakhapatnam. The project, being developed with an investment of more than ₹460 crore, will have an annual production capacity of approximately 96 million semiconductor chips and is expected to strengthen the state’s position in India’s expanding semiconductor and electronics manufacturing ecosystem.
Developed by ASIP Technologies Pvt Ltd in partnership with APACT, Republic of Korea, the facility is the first semiconductor manufacturing project in Andhra Pradesh to receive approval under the India Semiconductor Mission. The project is expected to create high-skilled employment opportunities and support the development of a strong network of ancillary industries, suppliers and technology partners around the semiconductor manufacturing ecosystem.
The groundbreaking ceremony marks an important step in the transition of India’s semiconductor ambitions from policy initiatives and project announcements to on-ground execution. The country’s semiconductor ecosystem has continued to expand, with the Union Cabinet approving additional projects in May 2026. The total number of semiconductor facilities approved under the India Semiconductor Mission has now reached 12 across six states, representing cumulative investments of approximately ₹1.64 lakh crore.
The sector has also received further policy momentum through the approval of Semicon 2.0, or India Semiconductor Mission 2.0, with a fiscal outlay of ₹1,27,500 crore. The programme is aimed at strengthening domestic capabilities in semiconductor design, materials, advanced manufacturing and resilient global supply chains. In parallel, 24 semiconductor design projects are being supported under the Design Linked Incentive Scheme, reinforcing India’s efforts to develop a comprehensive semiconductor ecosystem.
The development of the ASIP Technologies facility is expected to contribute to Andhra Pradesh’s growing technology landscape. Under the leadership of Chief Minister N. Chandrababu Naidu, the state is emerging as an important destination for technology-led industries, with electronics manufacturing and data centres becoming key components of its broader industrial development strategy.
The industry has welcomed the investment as an important contribution to India’s ambition of becoming a globally competitive semiconductor manufacturing hub. IESA and SEMI India congratulated ASIP Technologies and all stakeholders involved in the project, recognising the initiative as a significant step for the state’s semiconductor ecosystem.
The organisations also acknowledged Venkata Simhadri, Founder and CEO of ASIP Technologies, for his vision and commitment to establishing the facility in Andhra Pradesh. The project is expected to strengthen local manufacturing capabilities while supporting the creation of an ancillary ecosystem and skilled workforce required for long-term growth.
IESA is India’s industry body representing the Electronic System Design and Manufacturing and Intelligent Electronics sectors. The organisation works with government, industry and academic institutions to promote electronics manufacturing and design, support semiconductor ecosystem development and advance India’s position as a global technology hub.
