AP clears OSAT facility, puts Vizag on chipmaking radar

Visakhapatnam: Visakhapatnam is set to join the global semiconductor manufacturing map with the Andhra Pradesh State Cabinet clearing the establishment of an Outsourced Semiconductor Assembly and Test (OSAT) facility at Tarluvada village near the city. The decision marks a major milestone in the state’s push to build a strong semiconductor and electronics ecosystem. The clearance assumes significance as the global semiconductor market is projected to touch USD 1.27 trillion by 2035, driven by rising adoption of digital technologies and rapid transformation in the automotive sector. The proposed world-class OSAT project is expected to add a crucial value-added link to India’s semiconductor supply chain.

Welcoming the move, AP Digital Technology Industry (APDTI) Network Chairman Sreedhar Kosaraju said the area should also be considered for establishing an Electronic Manufacturing Cluster. Tarluvada already hosts India’s largest Centre for Electromagnetic Environmental Effects (E3), an advanced R&D lab under the Department of Electronics, Government of India.

The once-quiet village in Anandapuram mandal has witnessed a sharp rise in real estate prices following land allotment for a data centre project by Google. With semiconductor facilities now proposed close to Bhogapuram International Airport, property prices are expected to surge further.

The village has been selected for one of Google’s proposed data centres with a total investment of USD 15 billion. It will also receive an investment of Rs2,397 crore under the India Maritime Mission.