India advances semiconductor ambitions as Visakhapatnam OSAT plant anchors South India packaging push

India's launch of a $250 million OSAT facility in Visakhapatnam marks a strategic push into semiconductor manufacturing, strengthening local packaging capabilities and reducing reliance on Taiwan, China, and Hong Kong, China. This move enhances regional supply chain resilience but introduces risks related to talent gaps and long ROI horizons. Globally, it may prompt major players like TSMC and Samsung to expand operations in India to secure supply chain stability. Over the next 12–24 months, India could emerge as a key hub for semiconductor production shifts, especially amid rising demand for 5G and AI chips, accelerating its industrialization trajectory.