In a landmark development for India’s semiconductor industry, Indichip Semiconductors Limited, in collaboration with its Japanese joint venture partner Yitoa Micro Technology Limited (YMTL), has signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh to establish the country’s first private semiconductor manufacturing facility. The project, located in the Orvakal Industrial Park of Kurnool district, entails an investment exceeding ₹14,000 crore.
Focus on Silicon Carbide Technology
The facility will focus on manufacturing Silicon Carbide (SiC) chips, essential for energy-efficient technologies, electric vehicles, and renewable energy solutions. Initially, it will have a production capacity of 10,000 wafers per month. The capacity is planned to scale up to 50,000 wafers per month within the next two to three years.
Driving Economic Growth and Technological Advancements
The project aligns with India’s “Atma Nirbhar Bharat” initiative and Andhra Pradesh’s Semiconductor and Display Fab Policy 2024-29, launched in November 2024. The policy aims to position Andhra Pradesh as a global hub for electronics and semiconductor manufacturing, leveraging robust infrastructure and innovative incentives.
Speaking at the MoU signing ceremony, Andhra Pradesh HRD and IT Minister Nara Lokesh said, “This investment demonstrates Andhra Pradesh’s ability to attract cutting-edge industries. Our emphasis on talent development and seamless support will ensure the success of this initiative, strengthening India’s global semiconductor footprint.”
Industries and Commerce Minister TG Bharath emphasized the transformative potential of the SiC Fab facility, noting its impact on job creation and regional industrial growth. “The facility will not only create thousands of jobs but also foster the growth of ancillary industries, positioning Andhra Pradesh as a manufacturing powerhouse,” he said.
Strategic Investment for Sustainable Growth
Indichip Managing Director Piyush Bichhoriya underscored the project’s role in nation-building through innovation. “By focusing on silicon carbide chips, we aim to strengthen India’s manufacturing ecosystem and contribute significantly to the global semiconductor industry,” he said.
Sandeep Garg, Director at Indichip, highlighted the initiative’s sustainable impact. “This collaboration will pave the way for a greener future by addressing the growing need for energy-efficient solutions in electric vehicles and renewable energy,” he said.
Also read: Vodafone Idea Partners with HCL for Smarter 4G, 5G Networks
Policy Support and Infrastructure
The MoU was signed by Piyush Bichhoriya of Indichip and Saikanth Varma, CEO of the Andhra Pradesh Economic Development Board. State ministers and key stakeholders were also present during the signing. The project highlights Andhra Pradesh’s dedication to fostering high-tech industries and providing an enabling environment for global players.
Building India’s Semiconductor Ecosystem
The establishment of this SiC Fab facility is a major milestone in India’s semiconductor manufacturing journey. It highlights the country’s focus on sustainability and technological excellence. The facility will enhance India’s electronics manufacturing ecosystem while addressing the growing global demand for semiconductors.
This investment reinforces Andhra Pradesh’s position as a hub for innovation and economic development. It sets the stage for the state to become a significant player in the global semiconductor industry.
