Centre Clears ₹468-Crore Semiconductor Plant in Andhra Pradesh

Quick Summary

• The Union Cabinet, led by IT Minister Ashwini Vaishnaw, has approved a semiconductor manufacturing facility in Andhra Pradesh worth ₹468 crore.
• Named Advanced System in Package Technologies private limited (ASIP), the facility has an annual production target of 96 million units.
• collaborating with APACT Co.Ltd of South Korea, ASIP will specialize in chip packaging for mobile phones, set-top boxes, automotive ECUs, and consumer electronics.
• Andhra Pradesh CM N. Chandrababu Naidu expressed gratitude to PM Narendra Modi and highlighted the project’s potential to boost India’s backend semiconductor manufacturing capacity.
• A.P.’s IT Minister nara Lokesh called the approval a milestone supported by a national push for semiconductor initiatives under Atmanirbhar Bharat with ₹4,600 crore funding.
• BJP spokesperson Sadineni Yamini Sarma emphasized job creation, growth opportunities for Andhra Pradesh as a global tech hub.

Indian Opinion Analysis

The decision to establish ASIP highlights India’s growing commitment to strengthening its domestic electronics ecosystem and advancing Atmanirbhar Bharat’s strategic goals within the high-tech sector. By partnering with South Korea’s APACT Co., Ltd., India aims to bolster its backend capabilities in semiconductor manufacturing-a critical area given the global reliance on advanced chips across industries.

For Andhra Pradesh specifically, this growth marks significant progress not only toward economic growth but also toward asserting itself as an integral player in India’s technological future. With job creation potential and regional benefits alongside national budgetary support of ₹4,600 crore for similar initiatives across states-a broader push into semiconductor production underscores India’s ambition to reduce dependency on external supply chains while enhancing competitive capability globally.

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