In order to give a major impetus to the IT and electronics sector the government of Andhra Pradesh recently unveiled two new policies aimed at attracting investments in the semiconductor and data centre space.

The Government of Andhra Pradesh has introduced the Andhra Pradesh Data Center Policy (4.0) 2024–2029 which aims to promote the data center industry within the state.

This policy looks to add 200 megawatts (MW) of additional data center capacity, with a focus on attracting investment from advanced AI-enabled data centers and positioning Andhra Pradesh as a preferred destination for large-scale data embassies and data center parks.

Similarly, the government introduced the Andhra Pradesh Electronics Manufacturing Policy (4.0) 2024-29, which seeks to attract investments in the white electronic goods, the brown electronic goods, the consumer durable electronic goods, and the consumer non-durable electronic goods.

“Semiconductor Fab” is a factory ecosystem for semiconductor wafer fabrication. The fab comprises a “clean room” where the environment is minutely controlled, and machines for etching, doping, and dicing, and hence, expensive to build.

This policy was created after a comprehensive benchmarking exercise, where policies from other states were compared to ensure alignment with best practices and industry standards. Both policies shall be valid for a period of 5 years.