ASIP Technologies signs fiscal support agreement with ISM for its Visakhapatnam chip-packaging plant
The India Semiconductor Mission has signed a fiscal support agreement with ASIP Technologies for its OSAT plant near Visakhapatnam, which is planned to package about 96 million chips a year with Korean partner APACT.
The India Semiconductor Mission (ISM) has signed a Fiscal Support Agreement (FSA) with ASIP Technologies and its promoters for the company's semiconductor assembly and test plant in Andhra Pradesh. The ISM recorded the signing as taking place on 29 October 2026. The agreement is a procedural milestone in the project’s fiscal-support arrangements. It does not by itself establish that funds have been disbursed or the plant commissioned.
What the agreement covers
According to the ISM, the facility involves a total investment of over ₹460 crore. It is planned to make about 96 million semiconductor chips a year, creating direct and indirect high-skilled jobs in the region.
The project
ASIP's plant is an OSAT (outsourced semiconductor assembly and test) unit. OSAT plants take finished silicon wafers, cut them into individual dies, mount and connect them inside protective packages, and test the finished chips. The work needs less capital than wafer fabrication, which is why packaging plants have been the quickest part of India's chip push to get started.
Key details reported so far:
- Location: the planned Andhra Pradesh facility near Visakhapatnam.
- Technology partner: APACT Co. Ltd of South Korea.
- Products: chips for mobile phones, set-top boxes and automotive electronics.
- Packaging roadmap: assembly and testing are planned; a detailed process and commissioning schedule still needs confirmation.
- Investment: ISM’s announcement records over ₹460 crore. This is a project investment figure, not a confirmed grant payment.
How it fits the national picture
The Union Cabinet approved ASIP's proposal on 12 August 2025, as one of four projects with a combined outlay of about ₹4,600 crore. The others in that batch were SiCSem's silicon carbide compound-semiconductor fab and 3D Glass Solutions' advanced packaging unit, both in Odisha, and Continental Device India's unit in Punjab.
ASIP's plant is modest by comparison: a few hundred crore in its first phase, aimed at high-volume consumer and automotive chips. But that is its purpose. Mature-node packaging for phones, set-top boxes and cars is a large market, and building local capacity there gives India's electronics assemblers a domestic supply that does not depend wholly on East Asia.
Why it matters
Each FSA is a small but concrete marker that India's semiconductor programme is moving from announcements to money spent. Fiscal-support agreements add detail to the implementation framework; equipment orders, hiring and construction must be verified separately. For Andhra Pradesh, the plant puts the state on India's chip map alongside Gujarat, Assam, Odisha and Uttar Pradesh.
The key test now is execution. Watch for the construction schedule at Tarluvada, when equipment installation starts, and when the first packaged chips ship. Watch too for a published packaging-process roadmap and actual customer qualification.
Sources
- https://www.ism.gov.in/
- https://www.pib.gov.in/PressReleasePage.aspx?PRID=2155456®=48&lang=2
- https://www.eetimes.com/indias-osat-atmp-build-out-from-legacy-packages-to-2-5d/
- https://www.convergence-now.com/embedded-tech/pm-modi-lays-foundation-for-andhra-pradeshs-first-semiconductor-facility-in-visakhapatnam-%E2%82%B92500-crore-chip-project-moves-forward/
- https://newsmeter.in/top-stories/asip-technologies-to-set-up-semiconductor-plant-in-ap-odisha-and-punjab-to-build-3-units-753309
- https://fabs.pranaykotas.com/facilities/asip-andhra-pradesh.html
- https://www.digitimes.com/news/a20261007VL204/india-government-osat-packaging-plant.html