Indichip Semiconductors Ltd, in collaboration with Japan's Yitoa Micro Technology, is set to make a significant leap in India's electronics sector by establishing the nation's first private semiconductor plant in Andhra Pradesh. The ambitious project pegged at an investment of INR140 billion (US$1.62 billion), will focus on the production of silicon carbide (SiC) chips, a crucial component in the advancement of energy-efficient technologies.
Sources such as the Business Standard and the Times of India report that the joint venture has reached an agreement with the Andhra Pradesh government, paving the way for the development of the pioneering semiconductor manufacturing site. The facility, initially designed to produce 10,000 wafers per month, is expected to ramp up its production capacity to 50,000 wafers monthly within the next two to three years.
The announcement took place during a key meeting involving prominent state officials, including IT Minister Nara Lokesh and Industries Minister TG Bharat. The government has committed to providing land and crucial infrastructure at the Orvakal mega industrial hub in Kurnool, as part of their strategic Semiconductor Policy launched in November 2024. This policy underscores Andhra Pradesh's ambition to become a frontrunner in electronics and semiconductor manufacturing, highlighting the state's dedication to fostering technological growth.
Nara Lokesh emphasized that such a substantial investment is a testament to Andhra Pradesh's appeal to cutting-edge industries, driven by robust policies and excellent infrastructure. The move is expected to bolster India's semiconductor industry significantly. Industries Minister TG Bharath voiced confidence in the alignment with the state's vision of becoming a manufacturing powerhouse, noting the potential of the new SiC fab to create thousands of jobs, spur innovation, and provide support to ancillary industries.
Piyush Bichhoriya, managing director of Indichip Semiconductors, reflected on the initiative as a vital part of the company's commitment to nation-building through technological innovation. With a focus on SiC chips, the endeavor aims to enhance India's manufacturing landscape and make a substantial contribution to the global semiconductor market.
Meanwhile, Sandeep Garg, a director at Indichip, pointed out the collaboration's role in driving forward groundbreaking technological advancements. He highlighted the importance of addressing the rising demand for energy-efficient solutions, particularly in sectors like electric vehicles and renewable energy, paving the way for a sustainable future.