August 12, 2025: The Union Cabinet has cleared the path for a new semiconductor assembly and testing facility by Advanced System in Package Technologies (ASIP) in Andhra Pradesh, marking a strategic development in the state’s growing electronics sector.
The facility will be established by ASIP, in collaboration with South Korean partner APACT Limited. With a planned investment of ₹890 crore, the project is expected to generate 100 direct jobs in its initial phase.
This initiative is part of a broader national plan that includes semiconductor projects in Odisha and Punjab, bringing the total investment across the three states to ₹4,600 crore and expected to create over 2,000 job opportunities.
ASIP’s Nod to OSAT/ ATMP facility Project in AP Is Part of Government’s Latest ₹4,600 Cr Plan for the sector
The Andhra Pradesh government has welcomed the project, viewing it as a significant step in expanding the state’s semiconductor and electronics manufacturing ecosystem. The ASIP-Korean venture is aligned with the state’s ambition to become a key hub for advanced technology and electronics assembly in the coming years.
In an earlier statement, Mr. Seong-Dong Lee, CEO of APACT Limited, shared his enthusiasm:
“We are excited to bring cutting-edge semiconductor technology to India and contribute to the country’s economic growth. This joint venture holds immense potential to create a ripple effect of innovation and job creation in the region.”
The upcoming facility is expected to leverage global expertise and advanced manufacturing processes to support domestic and international chip supply chains. Advanced System in Package Technologies is in the process of setting up an OSAT/ ATMP facility to serve both India’s growing domestic needs and to provide an alternate supply chain to the global ecosystem.
The core team members, Venkata Simhadri, MM Pallam Raju, and Sreenivas Vaddi established Advanced System in Package (ASIP) Technologies Private Limited in the Fall of 2017, with the intent of establishing a world-class OSAT facility, to cater to the growing Indian ESDM activity and also markets worldwide. Sreenivas Vaddi, a veteran of the Semiconductor Manufacturing Industry from Silicon valley is the CEO of the enterprise.
OSAT/ ATMP process contributes about 30-40% of the value of an IC, depending on the packaging and leads.
Advanced System in Package Technologies provides complete turn-key solutions (package design, bumping, assembly, testing, dropship) with best-in-class quality and service.
