ASIP Technologies will set up a semiconductor packaging plant in Andhra Pradesh under a technology partnership with South Korea's APACT Co. Ltd., backed by an approved investment of about $560 million under the India Semiconductor Mission. The facility will have capacity to produce 96 million semiconductor packages annually for mobile devices, set-top boxes, automotive systems and other consumer electronics, adding to India's growing outsourced assembly and test capacity.
Semicon Hunt -> partnership -> ASIP Technologies
2026-06-11
Advanced System in Package (ASIP) Technologies, an Indian outsourced semiconductor assembly and test (OSAT) company founded in 2017, will set up a new packaging plant in Andhra Pradesh after India's Union Cabinet approved the project with an investment of about $560 million. The plant is being developed under a technology tie-up with South Korea's APACT Co. Ltd. and is one of four new manufacturing units cleared under the India Semiconductor Mission alongside projects in Odisha and Punjab.
The Andhra Pradesh facility is designed to produce around 96 million semiconductor packages annually, serving applications in mobile phones, set-top boxes, automotive electronic control units and other consumer electronics. Andhra Pradesh Chief Minister N. Chandrababu Naidu welcomed the central government's approval, framing the plant as a step toward strengthening India's position in advanced chip packaging for high-volume consumer and automotive markets.
The collaboration with APACT gives ASIP access to established packaging process technology and equipment know-how, an approach mirrored elsewhere in India's semiconductor buildout, where domestic companies are pairing with experienced overseas partners to compress the learning curve for advanced packaging. ASIP was founded by Venkata Simhadri, MM Pallam Raju and Sreenivas Vaddi with the explicit goal of building a world-class OSAT operation in India.
ASIP's plant is one of four projects cleared in the same Cabinet round, alongside SiCSem's silicon carbide fab and 3D Glass Solutions' glass substrate facility in Odisha, and Continental Device India's expansion in Punjab. Together, the four projects carry a combined outlay of about $550 million in government-linked investment and are expected to create more than 2,000 direct skilled jobs, according to government estimates.
India's semiconductor strategy has increasingly emphasized OSAT and advanced packaging as segments where the country can build a global position more quickly than in leading-edge wafer fabrication. ASIP's plant adds to a growing list of OSAT investments, including facilities from Kaynes Semicon, Micron and others, as India works to cover more stages of the chip supply chain domestically.
With central approval secured, ASIP Technologies and APACT are expected to move toward site development and equipment procurement in Andhra Pradesh, with initial direct employment estimated at around 100 jobs in the first phase. The project's progress will likely be watched as a test case for technology-partnership-led OSAT expansion under the India Semiconductor Mission.
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