VISAKHAPATNAM: With an investment of Rs 2,500 crore, Tarluvada village near Visakhapatnam is set to host South India’s first semiconductor manufacturing facility approved under the India Semiconductor Mission (ISM 1.0).
Prime Minister Narendra Modi virtually laid the foundation stone for the project on Saturday. The Outsourced Semiconductor Assembly and Test (OSAT) facility is being set up by Advanced System in Package Technologies (ASIP), in partnership with South Korea-based APACT Co Ltd.
The project will be developed in phases on a 30-acre site. The company will initially invest over Rs 460 crore and plans to invest an additional Rs 2,000 crore in the next phase.
The facility will have the capacity to package and test about 96 million semiconductor chips annually.
The project is expected to generate more than 1,000 direct skilled jobs and around 1,600 indirect jobs.
Production will initially begin with wire-bond and Flip-Chip Ball Grid Array (BGA) packaging technologies, followed by advanced 2.5D and 3D packaging within two to three years.
Addressing the event, Modi said AP, which has emerged as a major information technology hub, is now well placed to play a key role in semiconductor manufacturing.
Modi unveils growth roadmap for Andhra, backs ports, chips and jobs
Upon his arrival, the Prime Minister was received by Andhra Pradesh Governor Syed Abdul Nazeer, Goa Governor P Ashok Gajapathi Raju, Chief Minister N Chandrababu Naidu, Deputy Chief Minister K Pawan Kalyan, HRD and IT Minister Nara Lokesh, and Union Civil Aviation Minister K Ram Mohan Naidu.
Built at a cost of over Rs 5,640 crore by GMR Visakhapatnam International Airport Limited (GVIAL) under a public-private partnership model, the facility was inspected by Modi, who toured the check-in hall, modern passenger amenities, and terminal artworks celebrating Telugu heritage. GMR representatives briefed the Prime Minister on the overall master plan.
The event reached a spectacular visual peak as the Prime Minister proceeded toward the public meeting venue in an open-top jeep. He was greeted by a performance of 200 Kuchipudi dancers near the terminal, and a record-setting display by over 13,000 tribal women performing the traditional Dhimsa dance of North Andhra. On stage, Naidu, along with Pawan Kalyan and Lokesh, honoured Modi with a traditional Ponduru Jamdani Anga Vastra, and presented a handcrafted Bobbili Veena, symbolising the cultural legacy of Uttarandhra.
Addressing the massive gathering, the Prime Minister commended Naidu and Pawan Kalyan for executing the State’s reconstruction agenda at “double speed.” He paid rich tributes to revolutionary freedom fighter Alluri Sitarama Raju.
Drawing a sharp political contrast, the Prime Minister remarked, “In the past, whichever airport was built in India was named after a single family. However, our government named the Ayodhya airport after Maharishi Valmiki, the Punjab airport after Sant Ravidas, and this greenfield facility after Alluri Sitarama Raju.”
Outlining a broader strategy to fortify the nation’s Blue Economy, the Prime Minister detailed plans for an integrated Coastal Economic Corridor from Visakhapatnam to Krishnapatnam, combining port modernisation with new deep-water hubs at Mulapeta and Ramayapatnam, the Visakhapatnam–Raipur Expressway, and ongoing railway projects worth Rs 1 lakh crore under the PM Gati Shakti National Master Plan.
The PM pointed to the semiconductor assembly facility in Vizag, AI infrastructure development, and Google’s $15-billion cloud campus investment.
Coupled with a major Pharma Park in Nakkapalli and over Rs 5 lakh crore in green energy investments across Rayalaseema, Modi reiterated the NDA government’s core philosophy—converting public and private investment into manufacturing, exports, and high-value job.