Visakhapatnam, India: Prime Minister Narendra Modi is set to lay the foundation stone for ASIP Technologies’ ₹2,388 crore semiconductor facility in Visakhapatnam, Andhra Pradesh, marking a major milestone in India’s ambition to become a global semiconductor manufacturing hub.
The project will be the first approved semiconductor facility in Andhra Pradesh under the India Semiconductor Mission (ISM) and represents another step in the country’s efforts to build a self-reliant semiconductor ecosystem.
Andhra Pradesh Gets Its First Semiconductor Project
The upcoming facility will function as an Outsourced Semiconductor Assembly and Test (OSAT) unit, where semiconductor chips will be assembled, packaged and tested before being supplied to electronics manufacturers.
The project is expected to significantly strengthen India’s semiconductor value chain by expanding domestic chip packaging and testing capabilities.
Union Minister for Electronics and Information Technology Ashwini Vaishnaw announced that Prime Minister Narendra Modi will lay the foundation stone for the project, highlighting its importance in advancing India’s semiconductor ambitions.
₹2,388 Crore Investment to Boost Domestic Chip Manufacturing
The semiconductor facility will be developed with an investment of ₹2,388 crore and will be executed in two phases.
Once fully operational, the plant is expected to:
- Manufacture and package up to 96 million semiconductor chips annually
- Generate approximately 1,000 skilled jobs
- Strengthen India’s semiconductor supply chain
- Support the country’s electronics manufacturing ecosystem
The project is expected to attract further investments into Andhra Pradesh’s growing electronics and advanced manufacturing sector.
Strengthening India’s Semiconductor Ecosystem
The ASIP Technologies facility aligns with the Government of India’s broader strategy under the India Semiconductor Mission, which aims to reduce dependence on imported semiconductor components while encouraging domestic manufacturing, packaging, testing and design capabilities.
India has been actively promoting investments across the semiconductor value chain through financial incentives, policy support and infrastructure development as global demand for chips continues to rise.
The development of OSAT facilities is considered a critical step in creating a complete semiconductor ecosystem, complementing chip design, fabrication and electronics manufacturing.
A Boost for Andhra Pradesh’s Technology Landscape
The project is expected to position Visakhapatnam as an emerging semiconductor and electronics manufacturing hub, attracting skilled talent, supporting ancillary industries and contributing to the state’s industrial growth.
As India accelerates its semiconductor journey, investments like the ASIP Technologies facility are expected to play a crucial role in strengthening supply chain resilience, driving innovation and supporting the country’s vision of becoming a global technology manufacturing destination.
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Ruchi Kumar is the associate editor at Entrepreneur News Network and TVW News India, where she leads editorial strategy, brand storytelling, and startup ecosystem coverage. With a strong focus on innovation, business, and marketing insights, he curates impactful narratives that spotlight India’s evolving entrepreneurial landscape. She has written extensively on fintech, AI and emerging startups.