Andhra Pradesh Gets Its First Semiconductor Plant, Boosting India’s Chip Manufacturing Ambitions

New Delhi, Aug 2026 : Andhra Pradesh has taken a major step towards establishing itself as a key semiconductor manufacturing hub with the inauguration of the state’s first semiconductor facility in Visakhapatnam by Prime Minister Narendra Modi under the India Semiconductor Mission.

Industry experts said the facility is expected to strengthen Andhra Pradesh’s semiconductor ecosystem, generate high-skilled employment and provide further momentum to India’s efforts to build domestic capabilities in chip manufacturing.

Developed by ASIP Technologies Pvt Ltd in partnership with South Korea-based APACT, the facility has been established with an investment of more than Rs 460 crore. It is expected to have the capacity to manufacture around 96 million semiconductor chips annually, marking a significant addition to India’s growing electronics and semiconductor manufacturing infrastructure.

The facility is the first semiconductor manufacturing plant in Andhra Pradesh to receive approval under the India Semiconductor Mission. Its establishment is also expected to create opportunities for ancillary industries, technology providers, skilled professionals and suppliers associated with the semiconductor value chain.

Ashok Chandak, President of IESA and SEMI India, described the development as evidence of the growing momentum in India’s semiconductor ecosystem, noting that the sector is increasingly moving from policy announcements towards actual project execution.

Chandak said India was building a credible and globally trusted semiconductor ecosystem through policy initiatives, continuity and sustained government support. He also highlighted Andhra Pradesh’s emergence as an important technology destination, with electronics manufacturing and data centres increasingly becoming key components of the state’s technology infrastructure.

The new facility comes amid a rapid expansion of India’s semiconductor programme. The Union Cabinet’s approval of two additional semiconductor projects on May 5, 2026, took the total number of facilities approved under the India Semiconductor Mission to 12 across six states. The combined investment in these projects is estimated at around Rs 1.64 lakh crore.

The government has also expanded its semiconductor strategy through India Semiconductor Mission 2.0, or Semicon 2.0. Approved with a fiscal outlay of Rs 1,27,500 crore, the programme seeks to broaden India’s capabilities beyond chip manufacturing by promoting domestic semiconductor design, materials production, advanced manufacturing technologies and resilient global supply chains.

The government is also focusing on strengthening indigenous semiconductor design capabilities. As many as 24 semiconductor design projects are currently being supported under the Design Linked Incentive Scheme.

The Visakhapatnam facility is therefore expected to play a role not only in increasing domestic chip production but also in integrating Andhra Pradesh more closely with India’s emerging semiconductor value chain. The project could further attract investments in electronics manufacturing, component production, research and development and related high-technology industries.

With semiconductor demand rising globally and countries seeking to diversify supply chains, the facility represents another step in India’s ambition to establish itself as a competitive destination for semiconductor manufacturing and technology investment.