A.P. Cabinet clears ₹2,388-crore semiconductor facility at Tarluvada

Advanced System in Package Technologies Private Limited will invest ₹2,388 crore to establish an outsourced semiconductor assembly and test (OSAT) facility at Tarluvada in Visakhapatnam district, creating 1,000 direct jobs. This is among several mega invsetment proposals cleared by the Andhra Pradesh Cabinet on Tuesday.

The project, approved under the Andhra Pradesh Semiconductor and Display Fab Policy (4.0) 2024–29, marks the first semiconductor manufacturing unit in the State to be cleared under the India Semiconductor Mission framework, the officials said.

The decisions were taken at the Cabinet meeting chaired by Chief Minister Nara Chandrababu Naidu at the Secretariat in Amaravati.

The Cabinet also approved allotment of 30 acres for the semiconductor unit and extended special incentives, noting that the project exceeds minimum eligibility norms and is expected to generate significant indirect employment while strengthening the State’s high-tech manufacturing ecosystem.

In another major technology push, the Cabinet approved proposals related to Adani Infra (India) Limited for setting up a 1,000 MW AI data centre cluster in Visakhapatnam and Anakapalli districts. About 601.4 acres will be allotted to three Special Purpose Vehicles (SPVs) — Vizag Hyperscale, Vizag Mega and Vizag Rambilli Data Centre Park — with regulatory facilitation and incentive review by an Executive Steering Committee.

Highlighting the broader investment climate, the State Investment Promotion Board (SIPB), which has met 15 times since July 2024, has so far approved 240 projects worth ₹9,05,391 crore with employment potential for 8.58 lakh people.

At its February 18 meeting alone, projects worth ₹29,021 crore with 23,407 jobs were cleared across renewable energy, food processing, electronics and tourism.

Clean energy

In the energy sector, approvals were granted for multiple wind, solar and hybrid projects, including a 900 MW solar project by NTPC Renewable Energy Limited in Kurnool district, and wind power allocations totalling 320 MW in Anantapur district under the A.P. Integrated Clean Energy Policy 2024.

The Cabinet also cleared incentives for several hospitality and tourism projects in Visakhapatnam, Rajamahendravaram, Amaravati, Tirupati and Chirala, besides approving a new government women’s degree college in Srirangarajapuram mandal of Tirupati district from the 2026–27 academic year.

Emphasising on “Speed of Doing Business,” the Chief Minister directed the departments to ensure time-bound grounding of approved projects, adopt emerging technologies, including Artificial Intelligence for transparent clearances, and strengthen inter-departmental coordination to boost investor confidence and long-term economic growth.