MoU On Semicon Chip Unit In Kurnool Will Promote Industrial Growth: Elcina

Vijayawada: Electronic Industries Association of India (Elcina) has described the MoU signed by Andhra Pradesh Government for establishing India's first private sector semiconductor manufacturing facility at Orvakal Mega Industrial Hub in Kurnool district as a game-changer in silicon carbide chips.

"We at Elcina warmly commend the Government of Andhra Pradesh for its visionary leadership in fostering India’s semiconductor revolution. The signing of the MoU between Indichip Semiconductors Limited and Yitoa Micro Technology Limited (YMTL) to invest Rs14,000 crore marks a groundbreaking milestone in the Indian semiconductor landscape, with heavy investment," the association, which articulates the viewpoint of the electronic industry in the country, has said.

Elcina is confident that this significant investment in Andhra Pradesh will catalyse industry growth, foster innovation, and solidify India’s position as a global leader in semiconductor manufacturing. We look forward to working closely with all stakeholders to ensure the successful implementation of this transformative initiative.

This state-of-the-art facility will focus on producing silicon carbide (SiC) chips, a critical technology that operates at significantly higher voltages, temperatures, and frequencies than traditional silicon-based semiconductors. SiC semiconductors are the cornerstone for advancing energy-efficient applications in electric vehicles (EVs), solar power conversion, 5G wireless networks, aerospace, and other transformative industries.

The EV market, in particular, represents the largest initial demand for SiC chips, enabling faster charging times and longer driving ranges. According to Canaccord Genuity, silicon carbide wafer capacity is expected to grow from 125,000 six-inch wafers in 2021 to over 4 million by 2030, driven by the growing EV sector alone.