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Andhra Pradesh's First ISM OSAT Unit: ₹2,387 Cr Investment in Visakhapatnam to Generate 1,000 Jobs

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
04 Jun 2026
~2 min
Source: The Hindu
Key Data:₹2,387.81 crore1,000 jobs₹1 per acre30 acresPhase I: ₹542.19 crorePhase II: ₹1,845.61 crore
Bodies:India Semiconductor Mission (ISM)Andhra Pradesh Industrial Infrastructure Corporation (APIIC)
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What This Article Covers

1.First India Semiconductor Mission (ISM) project in Andhra Pradesh: Outsourced Semiconductor Assembly and Test (OSAT) facility in Tarluvada, Visakhapatnam.

2.Total investment of ₹2,387.81 crore in two phases, with 30 acres of land allotted at a nominal rate of ₹1 per acre.

3.Part of the Andhra Pradesh Semiconductor and Display Fab Policy (4.0) 2024-29, with incentives capped at 40% of project cost.

The Big Picture
Prelims · HighMains · Medium

Andhra Pradesh is grounding its first project under the India Semiconductor Mission—an Outsourced Semiconductor Assembly and Test (OSAT) facility in Visakhapatnam with a total investment of ₹2,387.81 crore. The state is offering land at ₹1/acre and incentives under its Semiconductor Policy, aiming to create 1,000 jobs and position itself in India's chip-making ecosystem.

Exam Lens

Quick Exam Facts From News

Total Investment₹2,387.81 crore
Jobs Expected1,000
Land Allotment Rate₹1 per acre
Project TypeOSAT (Outsourced Semiconductor Assembly and Test)
State PolicyAndhra Pradesh Semiconductor and Display Fab Policy (4.0) 2024-29

1-Minute Revision

  • ›Total Investment: ₹2,387.81 crore
  • ›Jobs Expected: 1,000
  • ›Target this Data: ₹2,387.81 crore total investment & 1,000 jobs
  • ›Target this Nodal Body: India Semiconductor Mission (ISM) & Andhra Pradesh Industrial Infrastructure Corporation (APIIC)
  • ›Target this Legal Point: Andhra Pradesh Semiconductor and Display Fab Policy (4.0) 2024-29

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which state government corporation is directed to oversee the development of external infrastructure for the semiconductor project in Visakhapatnam?

Q2Statement-basedHard

Consider the following statements regarding the semiconductor project in Visakhapatnam:

1. It is the first project sanctioned to Andhra Pradesh under the Union government's India Semiconductor Mission (ISM).

2. The total investment for the project is ₹2,387.81 crore, with the entire amount to be invested in the first phase.

3. The project is expected to generate 1,000 jobs, with 200 jobs in the first phase and 800 in the subsequent phase.

Which of the statements given above is/are correct?

Q3Data-centricMedium

What is the total investment envisaged for the Outsourced Semiconductor Assembly and Test (OSAT) facility in Visakhapatnam?

Q4Application/ImpactMedium

What is a primary strategic objective of the Andhra Pradesh government in allotting land at ₹1 per acre for this semiconductor project?

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