Strengthening India’s Semiconductor Ecosystem: Foundation Stone Laid for Visakhapatnam OSAT Facility

In a major push toward achieving technological self-reliance, Prime Minister Narendra Modi virtually laid the foundation stone for a state-of-the-art Outsourced Semiconductor Assembly and Test (OSAT) facility in Visakhapatnam. This project, valued at ₹2,500 crore, is a strategic collaboration with the South Korean firm APACT Co. and is a key milestone under the India Semiconductor Mission (ISM 1.0).

The facility is designed to bolster India’s semiconductor packaging and testing ecosystem, which is a critical link in the global chip supply chain. By focusing on assembly and testing—processes that are essential for transforming raw silicon wafers into functional chips—this project aims to support high-growth sectors such as Artificial Intelligence (AI), high-performance computing, and data centers. The establishment of this unit in Visakhapatnam also underscores the government's commitment to decentralizing high-tech industrial growth, moving beyond traditional tech hubs to foster regional development.

For India, the semiconductor sector is not merely an industrial goal but a strategic necessity. The global supply chain disruptions witnessed in recent years have highlighted the vulnerability of relying on a few geographies for chip manufacturing. By incentivizing OSAT facilities, India is positioning itself as a reliable alternative in the 'China Plus One' strategy, attracting global players to integrate into the Indian manufacturing landscape. This initiative aligns with the broader vision of 'Atmanirbhar Bharat,' ensuring that India develops the indigenous capability to design, package, and test the building blocks of the modern digital economy.