Vizag Selected for Andhra Pradesh’s First Semiconductor Project

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 facility proposed by Advanced System in Package Technologies Private Limited.

Outsourced Semiconductor Assembly and Test

Outsourced Semiconductor Assembly and Test, or OSAT, is a semiconductor back-end manufacturing activity that covers assembly, packaging, and testing of chips. OSAT facilities are part of the semiconductor value chain and are used after wafer fabrication.

Project Location and Investment

The facility will come up at Tarluvada village in Anandapuram mandal of Visakhapatnam district. The total project investment is ₹2,387.81 crore, and the work will be executed in two phases. The first phase has an investment of ₹542.19 crore, while the second phase has an investment of ₹1,845.61 crore.

Capacity, Employment and Policy Support

The project is expected to generate 1,000 jobs, including 200 jobs in the first phase and 800 jobs in the second phase. The Andhra Pradesh government has approved 30 acres of land for the project at ₹1 per acre and has extended incentives under the Andhra Pradesh Semiconductor and Display Fab Policy (4.0) 2024-29, with support capped at 40% of the project cost.

Technology Tie-up and Timeline

Advanced System in Package Technologies will operate the facility under a technology tie-up with APACT Co. Ltd of South Korea. The proposed annual capacity of the facility is 96 million units, and the groundbreaking ceremony is scheduled for 8 June 2026.

Important Facts for Exams

• The India Semiconductor Mission is a Government of India initiative for semiconductor and display manufacturing.
• OSAT stands for Outsourced Semiconductor Assembly and Test.
• Visakhapatnam is a major coastal city in Andhra Pradesh and a port city on the Bay of Bengal.
• Andhra Pradesh Semiconductor and Display Fab Policy (4.0) covers the period 2024-29.

Semiconductor Industry in India

Semiconductor manufacturing includes wafer fabrication, assembly, packaging, and testing. India’s semiconductor policy framework includes support for fabrication units, display fabs, and OSAT facilities.