Indichip Semiconductors to Set Up India's First Private Semiconductor Manufacturing Facility in Andhra Pradesh.

National

In January 2025, Indichip Semiconductors Limited, headquartered in Noida, Uttar Pradesh (UP), in partnership with its Joint Venture (JV) partner Yitoa Micro Technology Limited (YMTL) from Japan, signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh (AP) to establish India’s first private semiconductor manufacturing facility at the Orvakal Mega Industrial Hub in Kurnool, AP.


      - The project involves an investment exceeding Rs 14,000 crores.

      - The MoU was signed between Piyush Bichhoriya, Managing Director (MD) of Indichip Semiconductors Limited, and Saikanth Varma, Chief Executive Officer (CEO) of the Andhra Pradesh Economic Development Board (APEDB).

      - This project aligns with AP’s Semiconductor Policy, launched in November 2024, aiming to transform the state into a hub for electronics and semiconductor manufacturing while supporting India’s Aatmanirbhar Bharat vision by boosting domestic production and reducing import dependency.

Main Point :-   (i) The AP government will provide land in the Orvakal Mega Industrial Hub along with essential infrastructure and support to ensure the project’s success.

      (ii) The facility will specialize in manufacturing Silicon Carbide (SiC) chips, crucial for energy-efficient technologies, Electric Vehicles (EVs), and Renewable Energy (RE) systems, with an initial production capacity of 10,000 wafers per month, scalable to 50,000 wafers per month within 2-3 years.

(iii) In November 2024, Gujarat became a pioneer in India's semiconductor industry by launching the Gujarat Semiconductor Policy 2022-2027, setting up the country’s first semiconductor facility in Sanand and initiating the construction of India’s first AI-enabled semiconductor fabrication plant in Dholera.
About Andhra Pradesh (AP)

CM: N. Chandrababu Naidu
Governor: Syed Abdul Nazeer
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