🇮🇳 India's Semiconductor Push Gets a ₹2,500 Crore Boost

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Semiconductor Update | ASIP Technologies to Build South India's First OSAT Facility

India's semiconductor ecosystem has reached another significant milestone with the launch of ASIP Technologies' OSAT (Outsourced Semiconductor Assembly & Test) facility in Tarluvada, Visakhapatnam.

Prime Minister Narendra Modi virtually laid the foundation stone for the project on August 1, marking another major step under the India Semiconductor Mission (ISM 1.0).

Project at a Glance

💰 ₹460 crore initial investment in partnership with South Korea's APACT.

📈 Additional ₹2,000 crore planned for future expansion, taking the total project value to nearly ₹2,500 crore.

🏭 South India's first semiconductor manufacturing facility approved under India Semiconductor Mission (ISM 1.0).

Manufacturing Capabilities

The facility will initially manufacture semiconductor packages using:

• Wire-Bond Packaging
• Flip-Chip Ball Grid Array (FC-BGA)

ASIP also plans to introduce advanced 2.5D and 3D packaging technologies within the next 2–3 years, enabling support for next-generation semiconductor applications.

Impact on India's Semiconductor Ecosystem

🔹 96 million chips annual production capacity.

🔹 1,000 direct high-skilled jobs and 1,600 indirect jobs.

🔹 Will support high-growth sectors including Artificial Intelligence (AI), High-Performance Computing (HPC), Data Centers, and High-Speed Communications.

🔹 Addresses one of the biggest gaps in India's semiconductor value chain—assembly and testing, which accounts for 30–40% of total chip manufacturing costs.

Looking Ahead

Beyond manufacturing, the project aims to localize semiconductor supply chains over the next 3–5 years, encourage the growth of ancillary semiconductor industries, and integrate sustainable practices such as solar power and water recycling.

With investments like these, India is steadily strengthening every stage of the semiconductor value chain—from design to advanced packaging—bringing the country closer to becoming a globally competitive semiconductor manufacturing hub.

Overview

India has taken another significant step toward strengthening its semiconductor ecosystem with the launch of ASIP Technologies' OSAT (Outsourced Semiconductor Assembly and Test) facility in Tarluvada, Visakhapatnam. Approved under the India Semiconductor Mission (ISM 1.0), the project is South India's first semiconductor manufacturing facility and represents a total planned investment of nearly ₹2,500 crore. Designed to produce 96 million chips annually, the facility will support high-growth sectors such as Artificial Intelligence (AI), High-Performance Computing (HPC), data centres, and high-speed communications, while generating substantial employment opportunities. By addressing the critical assembly and testing segment of the semiconductor value chain and introducing advanced packaging technologies in the coming years, the project marks a significant milestone in India's vision of becoming a globally competitive semiconductor manufacturing hub.

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