PM Modi inaugurates Andhra's first greenfield international airport, launches projects worth ₹17,900 crore
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Prime Minister Narendra Modi on Saturday inaugurated the Alluri Sitarama Raju International Airport at Bhogapuram in Andhra Pradesh's Vizianagaram district and launched multiple development projects worth over ₹17,900 crore, including South India's first semiconductor packaging facility under the India Semiconductor Mission.
Built at a cost of over ₹5,640 crore by GMR Visakhapatnam International Airport Ltd under a public-private partnership (PPP) model, the airport is Andhra Pradesh's first greenfield international airport since the state's bifurcation in 2014. Designed to handle six million passengers annually in its first phase, the airport is expected to significantly boost connectivity and economic activity in north Andhra.
Addressing a public gathering after inaugurating the airport, Modi described the facility as a "runway for the growth of north Andhra" and said the multi-sectoral projects spanning aviation, highways, energy and electronics reflected the state's rapid development.
"It is my great privilege to be on the holy land of North Andhra today to witness this momentous occasion," the Prime Minister said, adding that the projects symbolise the pace at which Andhra Pradesh is progressing.
Modi also referred to the Centre's recently introduced "spoke airport" model, saying the initiative launched in Varanasi has now expanded to Amritsar, connecting the Punjab city to more than 25 international destinations.
South India's first semiconductor packaging facility
Among the key projects launched was the foundation stone for ASIP Technologies' semiconductor manufacturing facility at Tarluvada in Visakhapatnam.
The ₹2,500-crore Outsourced Semiconductor Assembly and Test (OSAT) project is the first semiconductor manufacturing facility in Andhra Pradesh and South India to receive approval under the India Semiconductor Mission (ISM 1.0).
Chief Minister N. Chandrababu Naidu joined the foundation stone ceremony virtually.
Spread across 30 acres, the facility will initially be developed with an investment of over ₹460 crore in partnership with South Korea's APACT Co. as the technology partner. It will have an annual production capacity of 96 million chips, catering to high-growth sectors such as artificial intelligence (AI), high-performance computing, data centres and high-speed communications.
ASIP plans to invest an additional ₹2,000 crore in subsequent phases to expand its advanced semiconductor packaging operations.
The project is expected to generate over 1,000 direct high-skilled jobs and around 1,600 indirect jobs. Commercial production will begin with wire-bond and Flip-Chip Ball Grid Array (BGA) packaging technologies before expanding into advanced 2.5D and 3D packaging within the next two to three years.
Strengthening India's semiconductor ecosystem
Speaking at the event, Modi said Andhra Pradesh has already established itself as a hub for IT talent and is now well-positioned to emerge as a leader in semiconductor manufacturing. He said the Centre would continue supporting the state's manufacturing ambitions as part of the Viksit Bharat vision.
Amitesh Kumar Sinha, CEO of the India Semiconductor Mission, said the project represents an important milestone in India's semiconductor journey and reaffirmed the Centre's commitment to supporting the industry through policy initiatives.
ASIP Managing Director and CEO Venkata Simhadri said the Visakhapatnam facility would strengthen India's semiconductor manufacturing capabilities while promoting supply-chain localisation and skill development.
APACT CEO Seong Dong Lee said the partnership combines Korean semiconductor expertise with India's engineering talent and manufacturing potential, helping build a resilient global semiconductor supply chain.
India currently imports almost all semiconductor chips used in its electronics industry. The OSAT facility aims to address a critical gap in the domestic semiconductor value chain, where packaging and testing account for nearly 30-40% of chip manufacturing costs.
The company also plans to localise a significant share of its supply chain over the next three to five years and collaborate with institutions including IIT Tirupati and IIT Hyderabad to develop semiconductor talent. The facility will feature an in-house training centre and incorporate sustainability measures such as solar power generation and water recycling systems.