Indichip Semiconductors Limited and Japan-based M/s Yitoa Micro Technology Limited (YMTL) have signed a Memorandum of Understanding (MoU) with the Andhra Pradesh government to establish India’s first private semiconductor manufacturing facility. The ₹14,000-crore project will be built at the Orvakal Mega Industrial Park in Kurnool district, marking a significant milestone in India’s journey towards self-reliance in semiconductor manufacturing. The MoU was signed in Hyderabad in the presence of Andhra Pradesh ministers TG Bharath and Nara Lokesh. The facility, focused on producing silicon carbide (SiC) chips essential for electric vehicles and renewable energy technologies, will initially produce 10,000 wafers per month, scaling up to 50,000 within 2–3 years.
Driving Growth and Advancing Self-Reliance
The project aligns with the central government’s Atma Nirbhar Bharat vision and aims to position Andhra Pradesh as a global semiconductor hub. Nara Lokesh highlighted the state’s robust infrastructure and innovative policies as key enablers for attracting cutting-edge industries. TG Bharath praised Chief Minister N Chandrababu Naidu’s efforts in fostering balanced development and emphasized the semiconductor sector’s potential to create significant employment opportunities for the local population. Expected to become operational within two-and-a-half years, the facility will enhance India’s semiconductor manufacturing capabilities while contributing to the nation’s tech ecosystem and industrial growth.
