a day ago
Tirupati EMC to host Rs. 468-crore chip unit
TIRUPATI: The Electronics Manufacturing Cluster (EMC) shaping up near the Tirupati Airport has got a major boost with the Union Cabinet approving the establishment of a semiconductor manufacturing unit in Andhra Pradesh. The state government has proposed to set up the project at the Tirupati EMC, cementing the region's status as a hub for high-value electronics manufacturing.
The semiconductor unit will be established by Advanced System in Package Technologies (ASIP) with an initial investment of Rs 468 crore.
ASIP's facility will have initial capacity to produce 9.6 crore chips annually, catering to applications in mobile devices, set-top boxes, automotive electronic control units, and household electronics items.
The Andhra Pradesh government, in a letter sent to ASIP on Monday, formally invited the company to set up its operations in the state and outlined a package of incentives for the firm.
According to official sources, ASIP has given its consent and has plans to scale its investment over time to Rs 1,500 crore. To attract the project, the state government has offered a 25 per cent capital subsidy, land at nominal cost, a Rs 1.50 per unit electricity subsidy for five years, electricity duty exemption for the same period, a five-year interest subsidy on term loans, and full State GST reimbursement for five years.
ASIP's consent was subsequently communicated to the Centre, which granted its approval, clearing the way for the unit's establishment at the Tirupati EMC.
The venture marks a significant push in the state's strategy to balance its tech footprint—focusing on software investments in Visakhapatnam as well as Amaravati and positioning Rayalaseema as an electronics manufacturing hub. Tirupati was declared an electronics cluster between 2014 and 2019, and the new semiconductor unit is expected to accelerate investments in this sector.
ASIP Technologies, partnered with South Korea's Apact Company Limited, will be the latest high-profile occupant of the EMC. The cluster, developed under the Ministry of Electronics and Information Technology's (MeitY) EMC scheme, already hosts major players like Dixon Technologies and Celkon in EMC-1, while EMC-2 has attracted investments from companies such as TCL and Sunny Opotech.
The arrival of the semiconductor unit is expected to strengthen the electronics ecosystem in Tirupati, drawing in both domestic and foreign investors and leveling up India's position in the global semiconductor supply chain.
