Prime Minister Narendra Modi inaugurated the Alluri Sitarama Raju International Airport in Andhra Pradesh and launched a ₹2,500 crore semiconductor plant by ASIP Technologies. The airport is set to begin operations on August 17, 2026, while the semiconductor facility marks a key move into high-tech manufacturing under the India Semiconductor Mission.
Prime Minister Narendra Modi has officially inaugurated the Alluri Sitarama Raju International Airport located in Bhogapuram, near Visakhapatnam. This greenfield infrastructure project, spearheaded by GMR Visakhapatnam International Airport Ltd (GVIAL), represents a major push for connectivity in the North Andhra region. The airport has been developed across 2,200 acres with an investment exceeding ₹5,640 crore. It is currently equipped to manage 6 million passengers per year, with a design that allows for future expansion to accommodate up to 40 million passengers annually. Commercial operations are scheduled to commence on August 17, 2026.
Semiconductor Manufacturing Push in Andhra Pradesh
Beyond aviation infrastructure, the visit included the foundation stone laying for a new semiconductor manufacturing unit by ASIP Technologies. This project is notable as it is the first approved Outsourced Semiconductor Assembly and Test (OSAT) facility in South India under the government’s India Semiconductor Mission. The ₹2,500 crore investment is being executed in partnership with the South Korean firm APACT Co. The facility is expected to manufacture 96 million chips annually, targeting high-growth sectors such as artificial intelligence, high-performance computing, and data centers. ASIP Technologies has indicated intentions for a second phase of investment totaling ₹2,000 crore, which is expected to support the creation of over 1,000 high-skilled jobs.
Investor Context for Infrastructure and Technology
For investors, these developments highlight the ongoing capital spending trends in Indian infrastructure and the strategic shift toward domestic high-tech manufacturing. The expansion of the GMR group’s airport portfolio is part of a broader national trend in the civil aviation sector, which has seen the number of operational airports in India rise to 166 by 2026. The financial impact of the Bhogapuram airport will depend on its ability to capture passenger and cargo traffic from the Visakhapatnam region, which serves as a major industrial and port hub.
Regarding the semiconductor project, the India Semiconductor Mission provides a financial incentive framework for companies involved in chip assembly and testing. Investors tracking this sector should monitor the execution timeline of the ASIP Technologies facility, as semiconductor projects are capital-intensive and require long gestation periods to achieve stable production levels. The ability of the project to meet its 96-million-chip annual target will depend on global supply chain stability and domestic demand from the targeted technology sectors. The primary monitorables for shareholders include the commercial commencement of the Bhogapuram airport in mid-August and any subsequent updates regarding the procurement of equipment and regulatory approvals for the semiconductor facility.