Vizag secures first ISM-sanctioned semiconductor project in Andhra Pradesh

Visakhapatnam: The Andhra Pradesh government has approved the allotment of 30 acres of land at Rs 1 per acre in Tarluwada village in Visakhapatnam district to Advanced System in Package Technologies Pvt Ltd for establishing an outsourced semiconductor assembly and test (OSAT) facility. The project, with a total proposed investment of Rs 2,387.81 crore in two phases, marks a major milestone as the first India Semiconductor Mission (ISM)-sanctioned semiconductor project in the state. Interestingly, the proposed Google data centre project is also coming up in the same Tarluwada village.The company will invest Rs 542.19 crore in phase one and Rs 1,845.61 crore in phase two, generating employment for 1,000 persons. In recognition of its strategic significance, the council of ministers, at its meeting held on Feb 24, approved the proposal with a modification to allot the land at Rs 1 per acre as a special case, considering it the first project under the ISM for Andhra Pradesh.
The project has received formal approval from the India Semiconductor Mission under the Union ministry of electronics and information technology, underscoring its national importance in strengthening India's semiconductor manufacturing ecosystem.Earlier, Andhra Pradesh had issued the "Andhra Pradesh semiconductor and display fab policy (4.0), 2024–29" to attract investments in semiconductor manufacturing and has been making sustained efforts to secure ISM-approved projects. The proposal of Advanced System in Package Technologies Pvt. Ltd. was examined by the Andhra Pradesh Industrial Infrastructure Corporation and placed before the CCITEI in January. Based on its recommendations, the proposal was considered by the state investment promotion committee on February 12 and subsequently recommended to the state investment promotion board (SIPB). After detailed deliberations, the SIPB's recommendations were placed before the council of ministers, which accorded approval.Accordingly, the government has approved the extension of incentives of up to 40 per cent of the project cost, to be released on a pari passu basis, aligned with the Union government's disbursement of the 50 per cent grant under the ISM scheme, as a special case. The development of external infrastructure, including roads, power and water, will be undertaken by APIIC, with expenditure to be met from the relevant budget head of the State IT, electronics and communications department.The state revenue, energy, municipal administration and other concerned departments have been directed to work in coordination with the IT, electronics and communications department to ensure the early grounding of this first ISM-sanctioned project in Andhra Pradesh. The district collector, Visakhapatnam; VC & MD, APIIC; metropolitan commissioner, VMRDA; CMD, APEPDCL; and other officials concerned have been instructed to take the necessary further action to facilitate expeditious implementation.