Apect, a semiconductor post-processing specialist, announced on the 12th that its first local joint venture (JV) project with a Korean OSAT (semiconductor packaging and testing) company, scheduled to be established in Andhra Pradesh, India, received official approval from the Union Cabinet of India.
This project is part of the 'India Semiconductor Mission (ISM)' promoted by the Indian government, and is a project to build a facility capable of producing approximately 96 million semiconductor post-processing products annually in cooperation with local Indian partner Advanced System in Package (ASIP) Technologies.
Upon approval, Affect's JV project will be included as one of ten national strategic projects within the ISM and will receive subsidies equivalent to 75% of the total capital expenditure (CAPEX) from the central and state governments of India (50% from the central government and 25% from the state government). This will enable the JV to operate with minimal capital, with Affect expected to make the majority of its investment in the form of in-kind contributions and consulting services. Additional revenue generation from the provision of production facility equipment and design services is also expected.
Our local partner, ASIP Technologies, is recognized for its stable business operations and execution capabilities, with a management team that boasts over 30 years of industry experience, a strategic network in Silicon Valley, and operational expertise in India.
This facility is expected to be applied to a wide range of sectors, including mobile phones, set-top boxes, and automotive electronics systems. It will expand contact with overseas customers and lay the foundation for leveraging India as a global production base. Furthermore, as domestic IDM (integrated design, manufacturing, and distribution) companies expand their overseas factories, it is expected to have a significant impact on securing a leading position in the Indian market.
Affect is currently in the process of securing land, building infrastructure, and obtaining permits, with the goal of starting construction of the plant by 2025, and plans to begin full-scale mass production in 2027.
A company official stated, “This approval for the establishment of the Indian joint venture is a strategic turning point that goes beyond simply establishing a production facility to strengthen A-Fact’s position in the global semiconductor supply chain and secure a foundation for long-term growth.” He added, “As the first Korean OSAT company to advance into India, it holds significant significance in fostering India as a global hub centered on advanced technologies and contributing to market diversification.”
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