₹2,388-crore semiconductor unit cleared near Vizag AI data centre

A semiconductor assembly and testing unit will be established near the proposed Google AI data centre at Tarluvada in Anandapuram mandal of Visakhapatnam district, with an investment of ₹2,387.81 crore.

Hyderabad-based Advanced System in Package Technologies (ASIP) Pvt. Ltd. will set up the facility in two phases under the Centre’s Outsourced Semiconductor Assembly and Test Facility (OSAT) scheme aimed at promoting domestic semiconductor manufacturing.

According to official sources, the State government has allotted 30 acres for the project adjacent to the land earmarked for the Google AI data centre. Of the total land allocated, 27.83 acres are located in Survey No. 1/P at Tarluvada, while 2.169 acres are situated in the adjoining Gidijala village.

In the first phase, the company will invest ₹542.19 crore and generate employment for 200 persons. The second phase will see an investment of ₹1,845.61 crore and is expected to create jobs for another 800 persons.

The proposed facility will undertake semiconductor assembling, testing, marking, and packaging activities.

As part of the State’s industrial promotion measures, the land has been allotted at a nominal rate of ₹1 per acre. While the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) initially proposed transferring the land through a sale agreement, the company sought full ownership rights through a sale deed.

Following recommendations from the State Investment Promotion Board, the government approved the request, paving the way for the project’s establishment in the region.