The Andhra Pradesh government has approved the Semiconductor and Display Fab Policy, 2024-29 effective for five years starting from November 14, 2024. 

Objectives  
This policy aims to attract investments in the semiconductor and display fabrication sector with a special focus on Outsource Assembly & Testing (OSAT), Assembling, Testing, Marking & Packaging (ATMP), and emerging subsectors under the semiconductor and fabrication unit policy. 

Need of the Hour 
The Andhra Pradesh government already has an Andhra Pradesh Electronics Manufacturing Policy 2024-29 in place to promote investments in white and brown electronics and consumer electronics goods but it lacks a semiconductor policy that forms the base of all electronics goods whether consumables or appliances. 

With the Semiconductor policy in place, the Andhra Pradesh government aims to leverage the synergies economics of sales and the economic scope between the Fab plants and the Electronics industry. 

In manufacturing locations transportation and accessibility have a major role to play. In turn, businesses tend to incline towards beneficial and nearby locations to streamline processes for efficiency and optimization. 

Benefits 
The policy aims to give subsidies for projects approved under the India Semiconductor Mission, as well as for units not approved under that scheme but meeting the GoAP criteria, along with customized incentives for mega and ultra-mega projects.

Other majors include the development of Infrastructure based on the PPP model, including industrial quality clean rooms, dedicated free trade warehouse zones, industrial water supply, storm water drains, roads, uninterrupted power supply, dormitories, conference rooms, and other facilities for employees and executives.