PM Modi inaugurates ASIP Technologies as chip push grows

India's semiconductor manufacturing ambitions took another step forward as PM Modi inaugurated ASIP Technologies, a new semiconductor manufacturing facility at Tarluvada in Visakhapatnam. The project marks the first semiconductor unit in Andhra Pradesh and South India approved under the India Semiconductor Mission (ISM 1.0), highlighting India's growing focus on building domestic chip manufacturing capabilities.

Developed by ASIP Technologies Private Limited, the facility represents a total investment of ₹2,500 crore and is designed as an Outsourced Semiconductor Assembly and Test (OSAT) unit. The project aims to strengthen India's semiconductor supply chain while expanding local expertise in advanced chip packaging technologies.

Inside the ASIP Technologies Rs. 2,500 crore semiconductor project

The ASIP Technologies Rs. 2,500 crore semiconductor project is being developed on a 30-acre campus, with an initial investment of more than Rs. 460 crore. The facility is being established in partnership with South Korea-based APACT Co., which is providing technology support.

Once operational, the plant is expected to produce up to 96 million semiconductor chips annually. Production will focus on semiconductor packaging for artificial intelligence (AI), high-performance computing (HPC), data centres and high-speed communication systems, supporting sectors where demand for advanced chips continues to grow.

ASIP Technologies Visakhapatnam expands advanced chip packaging

The ASIP Technologies Visakhapatnam facility will begin operations with wire-bond and Flip-Chip Ball Grid Array (FC-BGA) packaging technologies. Over the next two to three years, the company plans to introduce advanced 2.5D and 3D packaging capabilities to address future semiconductor requirements.

The company has also proposed an additional investment of more than ₹2,000 crore to expand semiconductor packaging operations, increasing production capacity as demand evolves.

ASIP Technologies Vizag plant inauguration boosts local ecosystem

The ASIP Technologies Vizag plant inauguration is expected to strengthen Andhra Pradesh's semiconductor ecosystem by creating more than 1,000 direct high-skilled jobs and around 1,600 indirect employment opportunities.

According to the announcement, PM Modi is inaugurating ASIP Technologies at a time when India is expanding its semiconductor manufacturing ecosystem through local assembly, testing and packaging capabilities. The project is expected to support industries including AI, automotive electronics, telecommunications and data infrastructure.

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