Andhra Pradesh is set to host India's first private semiconductor manufacturing facility, as Indichip Semiconductors Limited and its Japanese joint venture partner, Yitoa Micro Technology Limited (YMTL), signed a Memorandum of Understanding (MoU) with the State government. The project represents a ₹14,000-crore (approximately $1.62 billion) investment and will be established in the Orvakal Mega Industrial Hub in Kurnool.

The facility will focus on producing silicon carbide (SiC) chips, a critical component for energy-efficient technologies, electric vehicles, and renewable energy solutions. Initially, the fab will have a production capacity of 10,000 wafers per month, ramping up to 50,000 wafers per month within two to three years.

Strategic Investment for India's Semiconductor Growth

Speaking about the initiative, Industries Minister T.G. Bharath said,

“This partnership aligns with Andhra Pradesh's vision to become a global hub for electronics and semiconductor manufacturing. The SiC fab will not only create thousands of jobs but also drive innovation and foster ancillary industries.”

The MoU was signed in Hyderabad by Piyush Bichhoriya, Managing Director of Indichip, and Saikanth Varma, CEO of the Andhra Pradesh Economic Development Board (APEDB), in the presence of IT Minister Nara Lokesh.

Nara Lokesh emphasized the State's commitment to attracting advanced industries:

“This investment demonstrates Andhra Pradesh's ability to draw cutting-edge industries through innovative policies and robust infrastructure. Our efforts will strengthen India's global semiconductor footprint.”

Advancing Sustainability and Innovation

The new facility aligns with the Aatmanirbhar Bharat initiative, contributing to India's self-reliance in semiconductor manufacturing. By focusing on SiC chips, the facility will support the growing demand for energy-efficient solutions in electric vehicles, smart grids, and renewable energy.

Piyush Bichhoriya, Managing Director of Indichip, highlighted the project's significance:

“This initiative reflects our commitment to nation-building through technological innovation. By producing silicon carbide chips, we aim to enhance India's manufacturing ecosystem and bolster the global semiconductor industry.”

Indichip Director Sandeep Garg added:

“This collaboration will deliver cutting-edge technology while paving the way for a sustainable future, addressing the increasing need for energy-efficient solutions.”

State Support for Semiconductor Manufacturing

The Andhra Pradesh government has pledged to provide land and infrastructure for the project in the Orvakal Mega Industrial Hub. The initiative is part of the State's semiconductor policy, announced in November 2024, which aims to establish Andhra Pradesh as a premier destination for electronics and semiconductor manufacturing.

“This facility will set a benchmark for India's growing technological prowess and position Andhra Pradesh as a leader in semiconductor manufacturing,” Minister T.G. Bharath observed.

The project is expected to create thousands of direct and indirect jobs, drive regional development, and establish Andhra Pradesh as a critical player in India's technological transformation.