MP Gaddam Vamsi urges Centre to set up semiconductor hub in Peddapalli–Mancherial

New Delhi: Peddapalli MP Gaddam Vamsi Krishna on Monday urged the Union Government to establish a semiconductor industry in the Peddapalli–Mancherial region of Telangana.

He also criticised the Centre for shifting a major semiconductor project to Andhra Pradesh, alleging political favouritism.

India Semiconductor Mission

Vamsi Krishna met Union Minister for Railways, Electronics and Information Technology Ashwini Vaishnaw and submitted a detailed representation highlighting the suitability of Peddapalli–Mancherial for a semiconductor unit.

He sought the Centre’s intervention to consider the region under the India Semiconductor Mission.

Strong regional advantages, says MP

The MP underlined that the region possesses key fundamentals required for a semiconductor industry, including assured water availability from the Godavari River and established industrial infrastructure.

He cited the presence of major public sector units such as Ramagundam Fertilisers and Chemicals Limited (RFCL), Singareni Collieries Company Limited and NTPC, which have helped create a pool of skilled and semi-skilled manpower.

'Unit will reduce unemployment in Mancherial and push industrial growth'

According to Vamsi Krishna, setting up a semiconductor unit in Peddapalli–Mancherial would generate large-scale employment, significantly reduce unemployment in the Mancherial district and enable local youth to contribute to the state and national economy.

He said the region’s strategic location and industrial ecosystem make it an ideal destination for high-technology manufacturing.

Allegations of political favouritism

The MP strongly objected to the Centre’s decision to shift a major semiconductor project to Andhra Pradesh, alleging that the move was driven by political considerations.

“Instead of prioritising merit and regional capability, the Union Government chose to play politics and shifted the semiconductor project to Andhra Pradesh,” he alleged, claiming that Telangana’s strengths were ignored.

What is the controversy about the semiconductor unit?

The controversy follows the Centre’s approval in August 2025 of a Rs 468-crore semiconductor unit in Andhra Pradesh under the India Semiconductor Mission.

The project is aimed at strengthening backend chip manufacturing and generating high-skilled jobs. Andhra Pradesh Chief Minister N Chandrababu Naidu welcomed the approval, describing it as a major boost to the state’s electronics ecosystem.

Telangana’s objection

Telangana ministers and Congress leaders have accused the Union Government of discrimination, stating that Telangana had offered land, subsidies and investor commitments for semiconductor projects.

They also pointed to earlier instances, including the Micron project, which eventually moved to Gujarat despite initial interest in Telangana, alleging a pattern of bias in favour of NDA-ruled states.