A.P. to get ₹14,000-crore semiconductor manufacturing facility in Orvakal Mega Industrial Hub

An MoU being signed for a semiconductor manufacturing unit in Andhra Pradesh, at a meeting in Hyderabad on Saturday. Industries Minister T.G. Bharath and HRD Minister Nara Lokesh are also seen.
| Photo Credit: Special Arrangement

The Indichip Semiconductors Limited and its joint venture partner M/s Yitoa Micro Technology Limited (YMTL) of Japan have signed a Memorandum of Understanding (MoU) with the Andhra Pradesh government to set up India’s first private semiconductor manufacturing facility in the State, with an investment of more than ₹14,000 crore.

“The MoU was signed in Hyderabad. The proposed facility will focus on manufacturing silicon carbide (SiC) chips, contributing to India’s technological advancement and sustainability goals,” Minister for Industries T.G. Bharath told The Hindu over phone on Saturday.

The semiconductor policy announced by the Andhra Pradesh government in November 2024 aims to transform the State into an electronics and semiconductor manufacturing hub.

The proposed SiC fab facility will be launched with a production capacity of 10,000 wafers per month, ramping up to 50,000 wafers per month within two to three years. Aligned with the Aatmanirbhar Bharat vision, this strategic investment aims to address the growing global demand for energy-efficient technologies, electric vehicles, and renewable energy solutions.

The MoU was signed by Piyush Bichhoriya, Managing Director, Indichip and Saikanth Varma, CEO, APEDB, in the presence of IT Minister Nara Lokesh and Mr. Bharath.

“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,” Mr. Lokesh said.

Indichip Directors Sandeep Garg, Web Chang, President of Business Strategy, Ravi A.V., JV partner representatives David York Yuan Chang, Chairman of Yitoa Micro Technology Corporation (YMTC), Japan, and Motosugi Keisuke, CEO of YMTC and project co-ordinator Bhaskar Reddy were also present.

“This partnership aligns with our vision of making Andhra Pradesh a manufacturing powerhouse. The SiC fab will not only create thousands of jobs but also spur innovation and foster ancillary industries in the region,” the Industries Minister said.

Indichip Semiconductors Managing Director Piyush Bichhoriya said this initiative symbolises the company’s 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,” he said.

“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,” Indichip Director Sandeep Garg said.

The State government promised to provide the required land for the project in Orvakal Mega Industrial Hub in Kurnool, apart from ensuring the necessary infrastructure and ecosystem.

“With this initiative, Andhra Pradesh is poised to emerge as a leading destination for semiconductor and electronics manufacturing, setting a benchmark for India’s growing technological process,” Mr. Bharath observed.