Vizag to Host Andhra Pradesh's First Semiconductor OSAT Project under India Semiconductor Mission

Key Facts

• Location: Tarluvada village, Anandapuram mandal, Visakhapatnam district, Andhra Pradesh
• Project Type: Outsourced Semiconductor Assembly and Test (OSAT) facility
• Company: Advanced System in Package Technologies Private Limited
• Total Investment: ₹2,387.81 crore (Phase 1: ₹542.19 crore; Phase 2: ₹1,845.61 crore)
• Job Creation: 1,000 jobs expected (200 jobs in Phase 1, 800 jobs in Phase 2)
• Land Allocation: 30 acres allocated by Andhra Pradesh Government at ₹1 per acre
• Incentives: Andhra Pradesh Semiconductor and Display Fab Policy (4.0) 2024-29 with subsidy support capped at 40% of project cost
• Technology Partnership: APACT Co. Ltd, South Korea
• Annual Capacity: 96 million units
• Groundbreaking Date: Scheduled on 8 June 2026

Background & Context

The OSAT facility focuses on semiconductor back-end manufacturing, including chip assembly, packaging, and testing, which occur after wafer fabrication. This project represents Andhra Pradesh's inaugural semiconductor mission project under the Indian government's India Semiconductor Mission initiative, aimed at developing indigenous semiconductor manufacturing capabilities. The state's government’s support through land allotment and incentives underscores its intent to develop a semiconductor manufacturing ecosystem.

Why This Matters for Exams / Exam Relevance

This development is significant because it reflects India's strategic push in the high-technology semiconductor sector under the India Semiconductor Mission, a priority area for national technological advancement and economic growth. It highlights the importance of state-level initiatives complementing national policies, and provides specific data points useful for exam preparation, such as investment details, location, job creation potential, and partnership details. Understanding the OSAT segment in the semiconductor value chain and its positioning in India's semiconductor policies is critical for questions relating to industrial development, technology, and government schemes.

Points to Remember

• The project is Andhra Pradesh's first semiconductor initiative under the India Semiconductor Mission, focusing on OSAT.
• Operating company: Advanced System in Package Technologies Private Limited with South Korean technology partner APACT Co. Ltd.
• Total investment of ₹2,387.81 crore divided into two phases (Phase 1: ₹542.19 crore; Phase 2: ₹1,845.61 crore).
• Expected job creation: 1,000 jobs (200 in first phase, 800 in second phase).
• Land of 30 acres was allotted by the Andhra Pradesh government at subsidized cost (₹1 per acre).
• The project benefits from Andhra Pradesh Semiconductor and Display Fab Policy (4.0) 2024-29, which offers incentives capped at 40% of the project cost.
• Annual production capacity is projected at 96 million units.
• Groundbreaking ceremony planned for 8 June 2026.