South India’s First ISM-Approved Semiconductor Facility Takes Shape Near Visakhapatnam

The Andhra Pradesh government has officially commenced work on South India’s first semiconductor manufacturing facility approved under the India Semiconductor Mission (ISM 1.0), marking a significant milestone in India’s efforts to strengthen domestic electronics manufacturing and semiconductor capabilities.

The project is being developed at Tarluvada village near Visakhapatnam by Advanced System in Package Technologies (ASIP) in partnership with South Korea-based APACT. Prime Minister Narendra Modi virtually laid the foundation stone for the facility on August 1, 2026, as part of a broader push to accelerate semiconductor manufacturing across the country.

The ₹2,500 crore project will be developed in multiple phases on a 30-acre site. The first phase will involve an investment of more than ₹460 crore, with additional investments planned in subsequent phases as production capacity expands.

The facility will function as an Outsourced Semiconductor Assembly and Test (OSAT) plant, focusing on semiconductor packaging and testing. Once fully operational, it will have the capacity to package and test nearly 96 million semiconductor chips annually, supporting India’s growing demand for locally manufactured semiconductor components.

Industry experts view the project as a major step towards reducing India’s dependence on imported semiconductor packaging services while strengthening the country’s position in the global electronics manufacturing value chain. The facility is also expected to support the government’s broader vision of building a resilient semiconductor ecosystem through domestic manufacturing, advanced packaging technologies and supply chain development.

The project is expected to generate more than 1,000 direct skilled employment opportunities while creating additional indirect jobs across logistics, engineering, equipment maintenance and supporting industries. The presence of a semiconductor manufacturing facility is also likely to attract ancillary industries, component suppliers and technology companies to the Visakhapatnam region.

Production at the plant will initially focus on advanced semiconductor packaging technologies, positioning Andhra Pradesh as an emerging semiconductor manufacturing hub. The project also reinforces the state’s strategy of attracting high-value technology investments while contributing to India’s long-term objective of becoming a globally competitive electronics manufacturing destination under the India Semiconductor Mission.