Indichip Semiconductors, in collaboration with Japan-based Yitoa Micro Technology (YMTL), has signed a Memorandum of Understanding (MoU) with the Andhra Pradesh government to develop India’s first private semiconductor manufacturing facility. The Rs 14,000 crore project aims to strengthen India’s semiconductor ecosystem and boost advanced technology manufacturing in the country. The MoU was formalized in Hyderabad in the presence of Industries Minister TG Bharath and IT Minister Nara Lokesh.
Located in the Orvakal Mega Industrial Hub, the facility will focus on producing silicon carbide (SiC) chips, catering to the rising demand for energy-efficient technologies, electric vehicles, and renewable energy applications. Under Andhra Pradesh’s 2024 semiconductor policy, the plant will begin operations with an initial capacity of 10,000 wafers per month, scaling up to 50,000 wafers within two to three years.
The state government has committed to providing land and necessary infrastructure to facilitate the project, positioning Andhra Pradesh as a major hub for semiconductor and electronics manufacturing. Officials highlight that the investment reflects the state’s ability to attract high-tech industries through supportive policies and infrastructure development.
