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GOVERNMENT OF INDIA
MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY
LOK SABHA
UNSTARRED QUESTION NO. 1723
TO BE ANSWERED ON: 29.07.2026
SEMICONDUCTOR FABRICATION AND OSAT POTENTIAL IN ANDHRA
PRADESH
1723. SHRI P V MIDHUN REDDY:
Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased
to state:
(a) whether the Government have assessed the potential for semiconductor fabrication,
packaging and Outsourced Semiconductor Assembly and Test (OSAT) facilities in Andhra
Pradesh;
(b) if so, the details thereof particularly with regard to Visakhapatnam and existing
Electronics System Design and Manufacturing clusters in the State; and
(c) the details of steps taken by the Government to attract semiconductor investments to
Andhra Pradesh?
ANSWER
MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY
(SHRI JITIN PRASADA)
(a) to (c): Inspired by the Hon’ble Prime Minister’s vision of AtmaNirbhar Bharat and making
India a global electronics manufacturing hub, Government adopted structured and targeted
policy initiatives for the development of electronics manufacturing across the entire value
chain including semiconductors.
The semiconductor industry is a foundational industry. All sectors of the economy such as
industrial, consumer, defence, telecommunication and automotive etc depend on
semiconductors. This sector offers transformative advantages by driving technological
innovation, economic growth, and strategic self-reliance.
Semicon India Programme:
Recognising the importance of Semiconductors, the Government launched Semicon India
Programme in January 2022 for setting up of semiconductor fabs, display fabs semiconductor
packaging and also for promotion of Indian designed chips.
Under Semicon India Programme, Government has approved 12 manufacturing projects with
total investment commitments of about Rs. 1.64 lakh crore. This includes the proposal of
Advanced System in Package (ASIP) Technologies Private Limited for setting up Assembly
Testing Marking and Packaging (ATMP) facility in district Visakhapatnam, Andhra Pradesh,
with an investment of ₹468 crores. The facility will be set up in technology partnership with
APACT Co. Ltd, South Korea. The production capacity of the facility would be around 96
million units/annum and the unit is expected to generate more than 500 employment
opportunities, depending on the factory automation.Further, under Semicon India Programme, Twenty-four (24) semiconductor design projects
have also been approved for financial support. Additionally, 105 start-ups/MSMEs have been
granted access to industry-standard Electronic Design Automation (EDA) tools. So far, the
usage of these chip design tools has exceeded 87 lakh hours.
Chip to Start-up Programme:
Additionally, Government launched Chips to Startup (C2S) programme to provide industry
ready manpower in chip design. Under this programme, access to cutting-edge chip design
tools has been provided at no cost. The access to these tools is provided to 320 organizations.
So far, the usage of these chip design tools has exceeded 240 lakh hours. The list of
organizations supported under C2S programme in the State of Andhra Pradesh is at Annex-
I.
Semicon 2.0:
To address the Semiconductor needs of the country and the world, the Union Cabinet has
approved Semicon2.0 on 15.07.2026 with an outlay of ₹1.275 lakh crore, providing ample
opportunity for the States to attract semiconductor investment.
Electronics Manufacturing Clusters (EMC):
Prime Minister Shri Narendra Modi ji has encouraged setting up manufacturing clusters in
various sectors like electronics, textiles, defence, chemicals, etc. His vision was translated
through the Electronics Manufacturing Cluster (EMC) scheme in electronics sector.
Government has supported the following EMCs in the state of Andhra Pradesh:
i. EMC at Cherivi, Chittoor District – Spread over an area of 94 acres, with a
project cost of ₹ 56.75 crore.
ii. EMC at Vikruthamala, Chittoor District – Spread over an area of 501.4 acres,
with a project cost of ₹ 248.9 crore.
iii. EMC at Renigunta and Yerpadu, Chittoor District - Spread over an area of
113.27 acres, with a project cost of ₹ 74.27 crore.
iv. EMC at Kopparthy, YSR District -Spread over an area of 540 acres, with a
project cost of ₹ 748.76 crore.
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Annex-I
List of organizations supported under C2S programme in the State of Andhra Pradesh:
1. Indian Institute of Technology Tirupati
2. Indian Institute of Information Technology Design and Manufacturing Kurnool
3. National Institute of Technology Andhra Pradesh
4. Shri Vishnu Engineering College for Women, Bhimavaram
5. Vignan's Foundation for Science Technology and Research, Guntur
6. Vellore Institute of Technology (VIT-AP) University, Amaravati, AP
7. SRM University, AP
8. Jawaharlal Nehru Technological University (JNTU), Kakinada
9. Jawaharlal Nehru Technological University (JNTU), Anantapur
10. V.R. Siddhartha Engineering College, Vijayawada
11. Anil Neerukonda Institute of Technology & Sciences (ANITS), Visakhapatnam
12. Vishnu Institute of Technology, AP13. Sagi Rama Krishnam Raju (SRKR) Engineering College, Andhra Pradesh
14. GMR Institute of Technology (GMRIT), Andhra Pradesh
15. G. Pullaiah College of Engineering and Technology, Kurnool
16. Koneru Lakshmaiah Education Foundation, Guntur
17. Vignan's Institute of Information Technology, Visakhapatnam
18. Mohan Babu University, Tirupati, Andhra Pradesh
19. Narayana Engineering College, Gudur, Andhra Pradesh
20. Sri Vasavi Engineering College, Tadepalligudem, Andhra Pradesh
21. Gayatri Vidya Parishad College of Engineering, Visakhapatnam
22. Santhiram Engineering College, Nandyal, Kurnool
23. National Institute of Electronics and Information Technology Tirupati
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