Hyderabad: The Narendra Modi-led Union Cabinet’s approval of a semiconductor manufacturing facility in Andhra Pradesh under the India Semiconductor Mission (ISM) has not gone down well with the Congress government in neighbouring Telangana, which is accusing the Centre of “blatant step-motherly treatment”.
In what Telangana’s IT, Electronics & Communications, Industries & Commerce Minister Duddilla Sridhar Babu labelled as “a baffling display of bias”, the Cabinet Tuesday approved four semiconductor projects, one of them in Andhra Pradesh.
Advanced System in Package (ASIP) Technologies will set up a semiconductor manufacturing unit in the state under a technology tie-up with South Korea’s APACT Co Ltd, with an annual capacity of 96 million units. The manufactured products will be used in applications in mobile phones, set-top boxes, automobile applications and other electronic products, said a PIB statement following the cabinet nod.
The other three projects include SiCSem and 3D Glass in Odisha, and CDIL Punjab.
Taking to X, Babu, a senior minister said that the Telangana government has done everything a proactive state should do, “from allotment of 10 acres of prime land at Maheshwaram (near Hyderabad) to all subsidies being approved and every clearance completed in record time, in order to host a world class advanced system and packaging facility”.
The designated company in Telangana is investment-ready and has been waiting only for the India Semiconductor Mission’s approval. “Yet, in a baffling display of bias, the Union Cabinet has greenlit a similar project in Andhra Pradesh where not even a single acre of land has been allotted,” said Babu.
Also Read: Naidu set to roll out another ‘Super Six’ promise. How free bus rides for women scheme will work
Stark contrast
Babu said the contrast is stark, noting that Telangana’s proposal is backed by ready-to-use land, approved subsidies, investor commitments and a clear implementation roadmap, “whereas no land has been allotted and groundwork remains incomplete in Andhra Pradesh”.
The Telangana Government has done everything a proactive State should do, from allotment of 10 acres of prime land at Maheshwaram to all subsidies being approved and every clearance completed in record time, in order to host a world class advanced system and packaging facility.…
— Sridhar Babu Duddilla (@OffDSB) August 12, 2025
“This is not an administrative lapse. It is blatant step-motherly treatment towards Telangana. A State with ready infrastructure, investor commitment and a clear execution plan has been side-lined in favour of an unprepared proposal existing only on paper,” the Congress minister accused the NDA government on X, using tags like #UnionBias and #TelanganaDemandsItsRight.
The Chandrababu Naidu-led Telugu Desam Party, in power in Andhra Pradesh, is also a major constituent of the National Democratic Alliance at the Centre. With 16 Lok Sabha MPs, TDP’s support is crucial for the Modi regime.
“This selective approach defies logic, undermines fairness and sends a damaging signal to global investors about the Centre’s priorities. Such politically motivated decisions are only an insult towards Telangana’s preparedness,” remarked Babu, while asserting that Telangana “will not accept being denied our rightful place in the national semiconductor growth story”.
Babu did not respond to ThePrint’s calls or messages seeking to know if the Revanth Reddy government plans to take its protest further to New Delhi through proper channels.
ThePrint also sought the response of Andhra Pradesh IT and electronics minister Nara Lokesh to his Telangana counterpart’s accusations. This report will be updated if and when a reply is received.
Meanwhile, Chief Minister Naidu expressed gratitude to Prime Minister Modi for approving the semiconductor facility in Andhra Pradesh, which he said “will enhance India’s backend semiconductor manufacturing capacity and foster a complete electronics ecosystem in AP”.
Lokesh, too, thanked Modi on X, saying that the semiconductor manufacturing facility, as part of a Rs 4,600 crore budgetary allocation, “comes to AP, driven by a double engine sarkar!”
Semiconductor manufacturing comes to AP, driven by a double engine sarkar! I am grateful to the Hon'ble Prime Minister @narendramodi ji for sanctioning a semiconductor manufacturing facility to AP as part of a Rs. 4,600 crore budgetary allocation. Advanced System in Package… pic.twitter.com/WEiHXg8Uce
— Lokesh Nara (@naralokesh) August 12, 2025
Speaking to ThePrint, TDP leader and spokesperson Vijay Kumar Neelayapalem termed Sridhar Babu’s “allegation of AP being underprepared for the unit” as incorrect.
“With Quantum Computing Valley coming up fast in Amaravati, it is but natural that Andhra aspires for a semiconductor unit. Further, both the industrial nodes in Rayalaseema, Kopparthi in Kadapa and Orvakal in Kurnool are progressing well and are capable of accommodating any company. Besides Sri-City, lands at Electronic City, Tirupati, as envisaged by the previous TDP government, are also intact for the unit to be set up there too,” said Kumar.
According to PIB, the four approved proposals are intended to set up semiconductor manufacturing facilities with a cumulative investment of around Rs 4,600 crore. They are expected to generate a cumulative employment for 2034 skilled professionals, which would catalyse the electronic manufacturing ecosystem, resulting in the creation of many indirect jobs.
With the four new approvals Tuesday, the number of total approved projects under ISM has risen to 10, with cumulative investments of around Rs 1.6 lakh crore in six states.
(Edited by Sugita Katyal)
Also Read: After ‘state-of-the-art gaushalas’ plan, Telangana CM Revanth now gearing up to redevelop temples