Modi Launches South India's First Semiconductor Plant in Visakhapatnam

Prime Minister Narendra Modi virtually laid the foundation stone on August 1, 2026, for South India's first semiconductor manufacturing facility in Tarluvada, Visakhapatnam. The project is being developed by Advanced System in Package Technologies Pvt. Ltd. in collaboration with South Korea's APACT Co. Ltd. as an Outsourced Semiconductor Assembly and Test facility approved under the India Semiconductor Mission.

The facility involves a total investment of approximately ₹2,500 crore and aims to package and test 96 million chips annually for AI, high-performance computing, and data centers. The 30-acre site will initially use wire-bond and flip-chip technologies before transitioning to 2.5D and 3D packaging within three years. The initiative is expected to create over 1,000 direct skilled jobs, supported by training centers collaborating with IIT Tirupati and IIT Hyderabad.

Following the ceremony, Union Electronics and IT Minister Ashwini Vaishnaw announced the approval of Semicon 2.0, marking a new phase in the national strategy. Since launching the Semicon India programme in 2022, the government has attracted 12 semiconductor projects totaling approximately $20 billion in investments, with three units already manufacturing chips. This expansion seeks to reduce national dependence on imported chips for defense, automobiles, and smartphones.