In a major milestone in India's journey to become a global chip manufacturing leader, Indichip Semiconductors Limited and its joint venture partner Yitoa Micro Technology Limited (YMTL) of Japan have signed a memorandum of understanding (MoU) with the Andhra Pradesh government to set up India's first private semiconductor manufacturing plant with an investment of over Rs 14,000 crore.

The cutting-edge plant will focus on producing silicon carbide (SiC) chips, contributing to India's technological advancement and sustainable development goals.

Under the Semiconductor Policy announced in November 2024, the Andhra Pradesh government aims to transform the state into an electronics and semiconductor manufacturing hub.

The new SiC fab

The new SiC fab will have a starting capacity of 10,000 wafers per month and ramp up to 50,000 wafers per month within 2-3 years. This strategic investment is in line with India's vision of 'A Self-Governed India' and addresses the growing global demand for energy-efficient technologies, electric vehicles and renewable energy solutions.

The MoU was signed by Indichip Managing Director Piyush Bichhoriya and APEDB CEO Saikanth Varma in the presence of Information Technology Minister Nara Lokesh and Industries Minister Sri TG Bharath. Indichip Director Dr. Sandeep Garg, Web Chang and Business Strategy President Ravi AV, JV partner representatives from Japan Yitoa Micro Technology Corporation (YMTC) Chairman David York Yuan Chang, YMTC CEO Motosugi Keisuke and Project Coordinator Bhaskar Reddy Also attended the signing ceremony.

Nara Lokesh, Minister of Information Technology, said: "This investment is a testament to Andhra Pradesh's ability to attract cutting-edge industries through innovative policies and strong infrastructure. Our focus on nurturing talent and providing seamless support will ensure the success of this initiative and strengthen India's presence in the global semiconductor sector." TGBharath, Minister of Industry, said: "This collaboration is in line with our vision to make Andhra Pradesh a manufacturing powerhouse. The establishment of this SiC wafer fab will not only create thousands of jobs but will also spur innovation and boost supporting industries in the region."Speaking at the ceremony, Piyush Bichhoriya, Managing Director of Indichip Semiconductors, said: "This move symbolizes our commitment to nation building through technological innovation. By focusing on SiC chips, we aim to strengthen India's manufacturing ecosystem and contribute to the global semiconductor industry." Dr. Sandeep Garg, Director of Indichip, added: "This collaboration will not only create cutting-edge technology but also pave the way for a sustainable future by meeting the growing demand for energy-efficient solutions for electric vehicles and renewable energy." The state government has pledged to build a new SiC wafer fab in Orvakal, Kurnool. The required land is available in large industrial hubs and the necessary infrastructure and ecosystem is provided to ensure the success of the project. With this development, Andhra Pradesh is expected to become a major destination for semiconductor and electronics manufacturing, setting a benchmark for India's growing technological progress.

Source: Content compiled from timesofindia

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