Rs 14K-Cr Semicon Chip Unit Coming Up In AP

This is a welcome step and gives a big fillip to cashing in on the opportunities for semiconductor design and manufacturing -- MP Dubey, Advisor, ELCINA, tells Bizz Buzz

Visakhapatnam: In a big response to the recently launched Andhra Pradesh Semiconductor Policy 2024-29, a private semiconductor manufacturing facility will come up at Orvakal Mega Industrial Hub in Kurnool district with an investment of Rs14,000 crore.

The cutting-edge facility will focus on manufacturing Silicon Carbide (SiC) chips, contributing to India’s technological advancement and sustainability goals. Under its semiconductor policy announced in November 2024, Andhra Pradesh aims to transform the State into a hub for electronics and semiconductor manufacturing.

IT and Electronics Minister Nara Lokesh after signing of the MoU said Indichip Semiconductors Ltd in collaboration with Japan’s Yitoa Micro Technology Ltd (YMTL) will set up private semiconductor fabrication facility in Andhra Pradesh due to proactive policy being implemented in the State to welcome investors unlike the previous regime.

“This is a welcome step and gives a big fillip to cashing in on the opportunities for semiconductor design and manufacturing,” Electronic Industries Association of India (ELCINA) Advisor MP Dubey told Bizz Buzz on Sunday.

ELCINA, the country’s oldest industrial body in the electronics sector, has predicted a demand-supply deficit for inputs in the electronics segment to increase to $248 billion by 2030 to cater to the projected $500 billion electronics production.

While disclosing about the breakthrough, Industries Minister TG Bharath said in a posting on X: “An MoU has been signed to bring Rs14,000 crore investment in the semiconductor sector at the Orvakal Industrial Park in Kurnool district. This agreement was signed between the Government of Andhra Pradesh and a consortium of companies, including Japan-based Yitoa Micro Technology Corporation, India’s Indichip Semiconductor Ltd, in the presence of Minister Nara Lokesh in Hyderabad.”

He said “this massive semiconductor project, the first of its kind in India, is set to be established in Andhra Pradesh, driven by the brand leadership of Chief Minister @ncbn Garu and the efforts of Minister @naralokesh garu. The ambitious project in Orvakal is expected to be completed within two and a half years.”

The State Government in a communique said the signing of MoU is a significant milestone for India’s journey to becoming a global leader in chip manufacturing. The new SiC fab facility will begin with a production capacity of 10,000 wafers per month, ramping up to 50,000 wafers per month within two to three years. This strategic investment is aligned with India’s Atma Nirbhar Bharat vision and addresses the growing global demand for energy-efficient technologies, electric vehicles, and renewable energy solutions.

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

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