Andhra Pradesh's first semiconductor plant to boost chip ecosystem, create jobs: Experts
New Delhi, Aug 1
Andhra Pradesh's first semiconductor manufacturing facility -- inaugurated by Prime Minister Narendra Modi in Visakhapatnam under the India Semiconductor Mission -- is expected to strengthen the state's chip ecosystem, create high-skilled jobs and accelerate the growth of semiconductor manufacturing, industry experts said on Saturday.
The facility which developed by ASIP Technologies Pvt Ltd in partnership with APACT, Republic of Korea, with an investment of over Rs 460 crore will have capacity to manufacture around 96 million semiconductor chips annually.
The facility is Andhra Pradesh's first semiconductor manufacturing plant approved under the India Semiconductor Mission, the statement added.
The groundbreaking development stands testament to the sweeping momentum of India's semiconductor ecosystem which is rapidly moving from announcement to execution, said Ashok Chandak, President, IESA and SEMI India, adding that the "momentum is building on the policy front as well."
Under the visionary leadership of Prime Minister Narendra Modi, India has built a credible and globally trusted semiconductor ecosystem through bold policy initiatives, unwavering commitment and policy continuity, he added.
Andhra Pradesh is rapidly emerging as a leading technology destination, with its electronics manufacturing and data centres becoming important pillars of India's growing semiconductor ecosystem, Chandak said.
The Union Cabinet's approval of two additional semiconductor projects on May 5, 2026, brought the total count of approved facilities under the India Semiconductor Mission to 12 across six states, with cumulative investments of approximately Rs 1.64 lakh crore.
The Union Cabinet's approval on Semicon 2.0 (India Semiconductor Mission 2.0) with a fiscal outlay of Rs 1,27,500 crore will extend the programme's focus to expand local design, materials production, and advanced manufacturing and resilient global supply chains.
As many as 24 semiconductor design projects are currently being supported under the Design Linked Incentive Scheme, the statement added.
— IANS
Reader Comments
This is great news for our youth in Visakhapatnam! 👏 The semiconductor industry needs skilled talent and this will encourage more engineering graduates to stay in India rather than going abroad. With Samsung and other companies looking at India as a manufacturing hub, this is the right direction. But I hope they also focus on affordable housing and infrastructure for workers coming to Vizag.
As someone who works in the supply chain sector, this is a strategic move. The Rs 1.64 lakh crore investment across 12 facilities shows India's serious about becoming a global semiconductor hub. The South Korea partnership brings valuable expertise. With the Semicon 2.0 budget of Rs 1.27 lakh crore, we're now catching up with Taiwan and Korea in chip manufacturing. Excellent policy continuity from the government!
Happy to see investments coming to our region, but we need to ask some important questions. What about environmental regulations for semiconductor manufacturing? These plants use large amounts of water and chemicals. Also, will the chips made here be used for defense and space sectors or just commercial? Transparency in these mega-projects is crucial for long-term public trust. 🤔
This is a game-changer for AP! 🙌 The synergy between the state's electronics manufacturing ambitions and the central government's semiconductor mission is perfect. With 24 design projects already under the DLI scheme, we're building the entire ecosystem - from design to fabrication. This will put India on the global chip map. Kudos to everyone involved!
Impressive numbers - 96 million chips annually from a single plant is no small feat. The India Semiconductor Mission's expansion to 12 facilities
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