VIJAYAWADA: In a significant milestone for India’s journey to become a global leader in chip manufacturing, Indichip Semiconductors Limited with its joint venture partner
Yitoa Micro Technology Limited (YMTL) of Japan, has signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh to establish the country’s first private semiconductor manufacturing facility with an investment of over Rs 14,000 crore at Orvakal Industrial Park in Kurnool district.
This cutting-edge facility will focus on manufacturing Silicon Carbide (SiC) chips, contributing to India’s technological advancement and sustainability goals.
The Government of Andhra Pradesh, under its the Semiconductor and Display Fab Policy 2024-29 announced in November 2024, aims to transform the State into a hub of electronics and semiconductor manufacturing.
The new SiC Fab facility will begin with a production capacity of 10,000 wafers per month, ramping up to 50,000 wafers per month within 2-3 years.
This strategic investment is aligned with India’s Atma Nirbhar Bharat and addresses the growing global demand for energy efficient technologies, electric vehicles, and renewable energy solutions.
The MoU was signed between Piyush Bichhoriya, Managing Director, Indichip, and Saikanth Varma, CEO, Andhra Pradesh Economic Development Board, in the presence of HRD and IT Minister Nara Lokesh and Industries and Commerce Minister TG Bharath on Saturday.
Speaking on the occasion, Lokesh said, “This investment is a testament to Andhra Pradesh’s ability to attract cutting-edge industries through innovative policies and robust infrastructure. Our focus on nurturing talent and providing seamless support will ensure the success of this initiative, and strengthen India’s global semiconductor footprint.”
Industries Minister TG Bharath said the establishment of the SiC Fab facility will not only create thousands of jobs but also spur innovation and foster growth of ancillary industries in the region, besides making AP a manufacturing powerhouse.
Piyush Bichhoriya said, “This initiative symbolises our commitment to nation-building through technological innovation. By focusing on silicon carbide chips, we aim to strengthen India’s manufacturing ecosystem, and contribute to the global semiconductor industry.”
“This collaboration will not only create cutting-edge technology but also pave the way for a sustainable future by addressing the growing need for energy-efficient solutions in electric vehicles and renewable energy,” said Sandeep Garg, Director, Indichip.