PM Modi Lays Foundation for South India’s First Semiconductor OSAT Facility in Visakhapatnam

ASIP Ground Breaking Ceremony of ASIP  Technologies in Vishakhapatnam

Prime Minister Shri. Narendra Modi today virtually laid the foundation stone and unveiled the plaque for ASIP Technologies semiconductor manufacturing facility at Tarluvada, Visakhapatnam. The ₹2,500 crore Outsourced Semiconductor Assembly and Test (OSAT) project is Andhra Pradesh's and South India's first semiconductor manufacturing facility approved under the India Semiconductor Mission (ISM 1.0).

Shri. N. Chandrababu Naidu, Hon’ble Chief Minister of Andhra Pradesh joined the Prime Minister virtually for the foundation stone ceremony.

Mr. Amitesh Kumar Sinha, CEO, ISM, Govt. of India, Mr. Bhaskar Katamneni IAS, Secretary, IT, Electronics & Communication, Govt. of Andhra Pradesh, Mr. Mallavarapu Surya Teja, IAS, Special Secretary, ITE & C, Govt of Andhra Pradesh were present at the ceremony along with senior government officials, industry leaders and global partners.

The 30-acre facility, established with an initial investment of over ₹460 crore in partnership with APACT Co., South Korea, as its technology partner, will have an annual production capacity of 96 million chips. It will serve high-growth sectors, including artificial intelligence (AI), high-performance computing, data centres, and high-speed communications.

ASIP also plans to expand the facility with an additional investment of over ₹2,000 crore to further scale up its advanced semiconductor packaging operations.

The project is expected to create over 1,000 direct high-skilled jobs and 1,600 indirect jobs.

Once operational, ASIP will commence production with wire-bond and Flip-Chip Ball Grid Array (BGA) packaging technologies, followed by the introduction of advanced 2.5D and 3D packaging capabilities within two to three years.

Prime Minister Shri. Narendra Modi in his address commended Andhra Pradesh’s IT talent pool in software. Now, with the groundbreaking of the semiconductor manufacturing facility, the state is well-poised to lead in the semiconductor manufacturing sector, and the government is committed to backing this emerging manufacturing growth story which is an important part of the Viksit Bharat mission. “

Mr. Amitesh Kumar Sinha, CEO, ISM, Govt. of India applauded ASIP breaking ground today, citing it as an important contribution and step forward to further India’s semiconductor mission, bringing advance semiconductor packaging facility in Vishakapatanam, Andhra Pradesh, he reaffirmed the ISM commitment to provide all the support through growth driven industry policies.

Mr. Venkata Simhadri, Managing Director and CEO of ASIP said "The groundbreaking of our Visakhapatnam facility marks a significant milestone for ASIP and our commitment to strengthening India's semiconductor manufacturing capabilities.

We thank the Government of India, MeitY, the India Semiconductor Mission (ISM), and the Government of Andhra Pradesh for their support and confidence in this project. Together with our partner APACT, we are establishing advanced assembly, packaging and testing capabilities in India, while driving skill development, supply chain localisation, and contributing to the growth of Andhra Pradesh's semiconductor ecosystem."

Mr. Seong Dong Lee, CEO, President of APACT said: "The semiconductor industry is increasingly looking for resilient and diversified supply chains. Our partnership with ASIP combines Korean technology expertise with India's engineering talent and manufacturing ambition. We believe this facility will become an important part of India’s Semiconductor Mission and the global semiconductor ecosystem, providing advanced packaging and testing solutions to customers globally.”

India currently imports virtually all semiconductor chips used in its electronics industry. This OSAT facility addresses a critical gap in the country's semiconductor value chain, where packaging and testing account for roughly 30% to 40% of a chip's manufacturing cost.

The company expects to localize a significant portion of its supply chain over the next three to five years while building partnerships with academic institutions, including IIT Tirupati and IIT Hyderabad. The facility will also include an in-house semiconductor training center aimed at developing a skilled workforce for India's growing semiconductor sector.

Sustainability features such as solar power generation and water recycling systems will be integrated into the project, with the goal of establishing a high-standard, environmentally responsible manufacturing operation.

About ASIP: ASIP (Advanced System in Package Technologies) is a semiconductor packaging and testing company dedicated to establishing world-class Outsourced Semiconductor Assembly and Test (OSAT) capabilities in India. Backed by global industry expertise, advanced manufacturing technologies, and strategic international partnerships, ASIP is building a state-of-the-art semiconductor packaging and testing facility to serve leading semiconductor companies across North America, Asia, and other global markets. The company is committed to strengthening India's role in the global semiconductor value chain through advanced packaging and testing solutions, talent development, technological innovation, and sustainable industrial growth. For more information, visit www.asip-tech.com.

Paras Semiconductors to Build India’s Next Big Chip Packaging Hub

Paras Defence’s semiconductor arm, Paras Semiconductors, will invest ₹6,200 crore to establish a greenfield OSAT (Outsourced Semiconductor Assembly and Test) facility in Madhya Pradesh’s Ujjain–Indore Corridor, marking a major boost to India’s chip packaging ecosystem. The state has allotted 50 acres of land for the project, which will focus on advanced packaging technologies and strategic applications.

In a press release filed with BSE and NSE, under SEBI Regulation 30 disclosures, Paras Semiconductors, the semiconductor arm of Paras Defence & Space Technologies Ltd., said that it has signed an MoU with the Government of Madhya Pradesh to set up a ₹6,200 crore advanced OSAT facility on 50 acres in the Ujjain–Indore Corridor.

The project aims to strengthen India’s semiconductor ecosystem, generate employment, and position Madhya Pradesh as a hub for next‑gen technologies. Leveraging expertise in optics and optronics, the company will focus on packaging and manufacturing devices for defence, sensor, and optical systems, with potential expansion into AI chips and advanced semiconductor technologies as market opportunities evolve.

This development comes within a few weeks after Adani Defence announced a ₹2,500 crore investment to establish a missile manufacturing hub in Shivpuri, Madhya Pradesh. 

Project Highlights

• Investment Size: ₹6,200 crore
• Location: Ujjain–Indore Corridor, Madhya Pradesh
• Land Allocation: 50 acres by the state government
• MoU Partners: Paras Semiconductors and MP State Electronics Development Corporation (MPSeDC)
• Announcement Date: July 22, 2026

Facility Capabilities

• Advanced Packaging: 2.5D/3D packaging, heterogeneous integration, hybrid bonding
• High-Density Solutions: Ultra-high-density fan-out packaging, chiplet integration
• Wafer-Level Processing: Wafer bumping, flip-chip assembly
• Testing & Reliability: Burn-in services, endurance screening for high-performance chips
• Applications: Defence electronics, AI compute, optical/optronic systems, sensor technologies

Commenting on the development, Munjal Sharad Shah, Managing Director, Paras Defence & Space Technologies Ltd., said: "The signing of this MoU marks a significant milestone in Paras Semiconductor's journey towards building indigenous semiconductor capabilities in India. We are honoured by the confidence and support extended by the Government of Madhya Pradesh and sincerely appreciate the state's progressive vision, industry-friendly policies and commitment to creating an enabling ecosystem for advanced manufacturing. The allocation of land on the Ujjain– Indore Corridor reflects the state's intent to foster long-term partnerships with industry. Through this investment, we look forward to contributing to Madhya Pradesh's industrial growth, creating high- value employment, nurturing a vibrant supplier ecosystem and supporting India's vision of becoming a globally competitive semiconductor manufacturing destination."

Commenting on the strategic significance of the project, Santosh Kumar, Chief Executive Officer, Paras Semiconductor, said: "The next phase of India's semiconductor journey will be defined not just by manufacturing capacity, but by the strength of the ecosystems we build around it. The Ujjain–Indore Corridor presents a unique opportunity to combine world-class infrastructure with a progressive policy environment to create a globally competitive semiconductor ecosystem. Ujjain, the sacred city of Mahakal and one of India's oldest centres of knowledge and civilisation, symbolises a remarkable convergence of heritage and the future. It is an honour for Paras Semiconductors to contribute to this transformation and be part of Madhya Pradesh's vision of building advanced semiconductor capabilities. Through this project, we aim to develop semiconductor devices for strategic applications, strengthen domestic technology capabilities and contribute to India's long-term technological self- reliance."

Strategic Importance

• Supports India Semiconductor Mission (ISM 2.0): Aligns with the Union Cabinet’s ₹1.275 lakh crore outlay
• Boosts Madhya Pradesh Semiconductor Policy 2025: Positions MP as a hub for semiconductors, electronics, AI, and data centres
• Employment Impact: Significant direct and indirect jobs in high-tech manufacturing
• Technology Expansion: Potential to move into AI chips and next-gen technologies

Risks & Challenges

• Execution Risk: Possible delays due to regulatory approvals and infrastructure readiness
• Global Competition: Competing with OSAT hubs in Taiwan, South Korea, and the US
• Supply Chain Dependencies: Reliance on raw materials and skilled workforce

Quick Comparison: OSAT Facilities in India

Facility	Investment	Location	Focus
Paras Semiconductors (Paras Defence)	₹6,200 crore	Ujjain–Indore, MP	Advanced packaging, AI chips, defence
Tata Electronics–ASML MoU	Multi-billion USD	Odisha	Lithography & packaging
3D Glass Solutions Odisha	₹1,943 crore	Bhubaneswar, Odisha	3D glass substrates, AI/defence
Micron Gujarat	$2.75 billion	Sanand, Gujarat	Memory packaging & testing

Outlook

This move by Paras Defence signals India’s aggressive expansion into semiconductor packaging, complementing fabrication projects in Gujarat and Odisha. If executed on schedule, Madhya Pradesh could emerge as a central hub for chip packaging and AI hardware, strengthening India’s position in the global semiconductor value chain.

Taiwan's CTCI Joins HCL‑Foxconn in Building India’s Semiconductor Future

HCL-Foxconn has appointed Taiwanese engineering giant CTCI as the EPC partner for its ₹3,706 crore semiconductor assembly and testing (OSAT) facility in Uttar Pradesh. The plant will manufacture display driver chips, marking CTCI’s entry into India’s semiconductor sector and strengthening India’s push for self-reliance in critical electronics.

Key Highlights of the Project

• Location: Jewar, Uttar Pradesh (near Noida International Airport).
• Investment: ₹3,706 crore under the India Semiconductor Mission.
• Partners: HCL Group and Foxconn (JV).
• EPC Partner: CTCI Corporation (Taiwan).
• Output: Display driver chips for mobile phones, laptops, automobiles, and PCs.
• Employment: Expected to generate 2,000+ direct and indirect jobs.

Why CTCI Was Selected

• Foxconn Relationship: Longstanding global partner, including projects in Taiwan and the US.
• Global Experience: Expertise in advanced technology facilities and industrial projects.
• India Entry: First semiconductor project in India, expanding its footprint in the chip ecosystem.

Strategic Importance

• Boosts India’s semiconductor ecosystem by reducing dependence on imports.
• Strengthens Atmanirbhar Bharat with localized chip packaging and testing.
• Reinforces Uttar Pradesh’s emergence as a tech manufacturing hub.
• Supports supply chain resilience in critical electronics.

Comparative Context

Factor	HCL-Foxconn UP Project	Other India Semiconductor Projects
Investment	₹3,706 crore	Micron (₹22,500 crore, Gujarat); Tata Electronics (Tamil Nadu)
Technology	OSAT (chip packaging & testing)	Fab units, ATMP facilities
Output	Display driver ICs	Memory chips, compound semiconductors
Global Partner	CTCI (Taiwan)	Micron (US), Vedanta (Foxconn earlier)
Location	Jewar, UP	Gujarat, Tamil Nadu, Odisha

Risks & Challenges

• Execution risks due to land acquisition, regulatory approvals, and supply chain bottlenecks.
• Global competition with established hubs like Taiwan, South Korea, and the US.
• Technology transfer depends on effective collaboration between Foxconn, CTCI, and Indian teams.

In summary, the HCL-Foxconn–CTCI partnership is a landmark step for India’s semiconductor ambitions, positioning Uttar Pradesh as a critical hub for chip packaging and testing while strengthening domestic supply chains.