The decision highlights the TDP's growing influence in securing mega projects from the Centre as a key ally in the ruling coalition.
Published Aug 14, 2025 | 9:00 AM ⚊ Updated Aug 14, 2025 | 9:00 AM
By virtue of its status as a key alliance partner in the NDA, the TDP-led Andhra Pradesh government’s proposals are cleared more easily.
Synopsis: The Union Government has approved a state-of-the-art semiconductor manufacturing facility for Andhra Pradesh, while a similar proposal from Telangana was not considered. The ₹468-crore project is expected to generate high-skilled jobs and strengthen the electronics ecosystem in Andhra Pradesh, adding to a long list of major projects sanctioned for the state since 2014.
The Union Government has approved a state-of-the-art semiconductor manufacturing facility for Andhra Pradesh, while a similar proposal from Telangana was not considered, the latest in a long line of projects proposed by the state to be left in limbo.
The Cabinet, chaired by Prime Minister Narendra Modi on Tuesday, 12 August, approved the project, seen as a game-changer for Andhra Pradesh’s industrial landscape.
Part of the Centre’s push to make India a global electronics hub, it is expected to generate high-skilled jobs and boost ancillary industries for the state.
The decision highlights the Telugu Desam Party’s (TDP) growing influence in securing mega projects from the Centre as a key ally in the ruling coalition.
In contrast, Telangana has once again found itself on the receiving end of a decade-long pattern of rejections or indefinite delays for its major proposals.
By virtue of its status as a key alliance partner in the NDA, the TDP-led Andhra Pradesh government’s proposals are cleared more easily, often packaged as part of national infrastructure strategies such as the East Coast Economic Corridor, industrial freight corridors, and national irrigation plans.
“Grateful to Hon’ble PM Narendra Modi for approving the ASIP-Technologies-APACT (South Korea) semiconductor facility in Andhra Pradesh,” an elated AP Chief Minister N Chandrababu Naidu wrote in a post on X.
“With 96 million units per year in advanced chip-packaging for mobiles, set-top boxes, automotive ECUs and Consumer Electronics, this will enhance India’s back-end semiconductor manufacturing capacity and foster a complete electronics eco-system in AP.”
The total investment is expected to be ₹468 crore, according to Union Minister for Information and Broadcasting Ashwini Vaishnaw.
In contrast, the long-standing political rivalry between the former BRS-led government (until 2023) and the BJP at the Centre, and now the Congress at the state level, has strained relations, leading to inaction on several proposals.
Adding to Telangana’s challenges, the Congress, after coming to power in 2023, scrapped certain BRS-initiated projects such as Pharma City, which had been awaiting Centre clearance. Observers note that had these projects been sanctioned earlier, the current government would have had little scope to cancel them.
Telangana Industries Minister Duddilla Sridhar Babu expressed his deep displeasure at the Centre’s latest decision in a post on X.
He said that the clearance of the semiconductor unit for Andhra Pradesh was “not an administrative lapse but a blatant case of step-motherly treatment towards Telangana.”
He pointed out that Telangana’s proposal for a semiconductor unit was backed by ready-to-use land, approved subsidies, investor commitments, and a clear implementation roadmap.
By contrast, no land has been allotted and groundwork remains incomplete in Andhra Pradesh.
He added that the Telangana government has done everything that a pro-active state should do – from allotment of 10 acres of land in Maheshwaram to approval of all subsidies and completion of all clearances in record time to host a world-class advanced system and packaging facility.
He added that the Cabinet’s decision sidelined Telangana despite its readiness, sending “a damaging signal to global investors about the Centre’s priorities.”
He called it “a politically motivated decision and an insult to Telangana’s preparedness” and said, “We will not accept being denied our rightful place in the national semiconductor growth story.”
The clearance for the semiconductor unit adds to a long list of major projects sanctioned for Andhra Pradesh since 2014. These include:
For Telangana, however, the Cabinet meeting on 12 August was yet another missed opportunity. Since its formation in 2014, the state has lobbied for multiple flagship projects, but most have been shelved or diverted to other states.
Some major setbacks include:
Analysts suggest politics, economic feasibility, and strategic priorities as possible reasons behind Andhra Pradesh’s success in securing projects and Telangana being repeatedly shut out.
(Edited by Dese Gowda)
