Visakhapatnam (also called Vizag) has been selected for Andhra Pradesh’s first semiconductor project under the India Semiconductor Mission

¨     Visakhapatnam (also called Vizag) has been selected for Andhra Pradesh’s first semiconductor project under the India Semiconductor Mission.

¨     The project is an Outsourced Semiconductor Assembly and Test (OSAT) facility proposed by Advanced System in Package Technologies Private Limited.

¨     OSAT (Outsourced Semiconductor Assembly and Test) refers to semiconductor back-end manufacturing activities such as chip assembly, packaging, and testing.

¨     OSAT facilities are part of the semiconductor value chain and operate after wafer fabrication.

¨     The facility will be set up at Tarluvada village in Anandapuram mandal of Visakhapatnam district.

¨     The total investment in the project is ₹2,387.81 crore.

¨     The project will be executed in two phases.

¨     Phase 1 investment is ₹542.19 crore, while Phase 2 investment is ₹1,845.61 crore.

¨     The project is expected to generate around 1,000 jobs in total.

¨     Phase 1 will create about 200 jobs, and Phase 2 will generate about 800 jobs.

¨     The Andhra Pradesh government has allotted 30 acres of land for the project at ₹1 per acre.

¨     The project will receive incentives under the Andhra Pradesh Semiconductor and Display Fab Policy (4.0) 2024–29, with support capped at 40% of the project cost.

¨     The facility will operate under a technology tie-up with APACT Co. Ltd.

¨     The proposed annual production capacity of the facility is 96 million units.

¨     The groundbreaking ceremony for the project is scheduled for 8 June 2026.

¨     The project is expected to strengthen India’s semiconductor ecosystem and boost back-end chip manufacturing capabilities.