30 acres for just Rs30!AP’s first chip plant gets land at Rs 1 per acre
image for illustrative purpose
Visakhapatnam: Andhra Pradesh’s first project sanctioned under the India Semiconductor Mission (ISM) has been allotted 30 acres of land at a symbolic price of Rs1 per acre in Tarluvada village of Visakhapatnam district.
The Andhra Pradesh IT, Electronics and Communication Department has allotted the land to M/s Advanced System In Package Technologies Private Limited for setting up an Outsourced Semiconductor Assembly and Test (OSAT) facility. The project entails an investment of Rs2,387.81 crore and has the potential to generate employment for 1,000 persons.
The investment proposal was recently cleared by the State Cabinet. The land allotment at a token price has been made “as a special case”, on the lines of land earlier given to TCS and Cognizant for establishing IT development centres in the city. This is the first ISM-approved project secured by the State.
The State is also extending special incentives under the AP Semiconductor and Display Fab Policy (4.0) 2024–29, which aims to attract investments in semiconductor manufacturing. The government has been making sustained efforts to secure ISM-approved projects for Andhra Pradesh, Industries & Commerce Secretary Dr. N. Yuvaraj stated in the government order.
Earlier, Advanced System In Package Technologies Pvt. Ltd. submitted a proposal seeking allotment of suitable land at Tarluvada village in Anandapuram mandal for establishment of the OSAT facility. The proposed investment of Rs2,387.81 crore will be implemented in two phases — Phase I with an outlay of Rs542.19 crore and Phase II with Rs1,845.61 crore, generating employment for 200 and 800 persons respectively. The company also sought fiscal and non-fiscal incentives, along with allotment of land at Rs1 per acre.
Under ISM, the Ministry of Electronics and Information Technology (MeitY), Government of India, approved the project and issued an approval letter underscoring its strategic importance.
Based on the recommendation of APIIC, the proposal was examined by the Consultative Committee for IT and Electronics Industry (CCITEI) on January 19, 2026, and subsequently by the State Investment Promotion Committee and the State Investment Promotion Board. The Council of Ministers approved the proposal on February 24, with modification to allot land at Rs1 per acre.
The incentives will be extended up to 40 per cent of the project cost and released on a pari-passu basis as and when the Centre disburses its 50 per cent grant. Concerned departments have been instructed to work together for early grounding of the project.
