The Government of Andhra Pradesh has signed a significant Memorandum of Understanding (MoU) with Indichip Semiconductors Limited, based in Amravati, and its joint venture partner Yitoa Micro Technology Limited (YMTL), a Japanese company. This partnership aims to establish a cutting-edge semiconductor manufacturing facility. The MoU was formalised between Piyush Bichhoriya, the Managing Director of Indichip, and Saikanth Varma, the CEO of the Andhra Pradesh Economic Development Board, marking a milestone in the state’s industrial growth.

Silicon Carbide Fab facility: A major investment

The upcoming Silicon Carbide (SiC) fabrication plant will commence with a production capacity of 10,000 wafers per month. In an ambitious growth trajectory, the facility plans to increase production to 50,000 wafers per month within the next two to three years. This transformative project will be located in the Orvakal Mega Industrial Hub in Kurnool, representing an investment of over Rs 14,000 crore.

A vision for growth and innovation 

Commenting on the initiative, Andhra Pradesh’s Human Resources Development Minister, Nara Lokesh, emphasised the state’s commitment to fostering cutting-edge industries. “This investment underscores Andhra Pradesh's ability to attract advanced industries through innovative policies and robust infrastructure. Our focus on nurturing talent and providing seamless support will ensure the success of this initiative and strengthen India's global semiconductor footprint,” he stated.

Policy support for semiconductor manufacturing 

To encourage growth in the electronics sector, the Telugu Desam Party (TDP)-led state government introduced the Semiconductor and Display Fab Policy 2024-29 in November 2024. This policy aims to provide a conducive environment for semiconductor manufacturing while leveraging Andhra Pradesh’s robust infrastructure and skilled workforce. This initiative not only strengthens Andhra Pradesh's industrial prowess but also places India firmly on the global semiconductor manufacturing map.