Indichip Semiconductors, in collaboration with Japan’s Yitoa Micro Technology (YMTL), has signed a Memorandum of Understanding (MoU) with the Andhra Pradesh government to set up a state-of-the-art semiconductor fabrication facility.
The ambitious project involves an investment of INR 14,000 crore and will be located at the Orvakal mega industrial hub in Kurnool.
The semiconductor plant will specialize in the production of Silicon Carbide (SiC) chips, essential components for energy-efficient technologies such as electric vehicles (EVs) and renewable energy systems.
Andhra Pradesh IT Minister Nara Lokesh shared the development on social media platform X, stating, “This state-of-the-art facility will specialise in producing silicon carbide (SiC) chips, essential for energy-efficient technologies like electric vehicles and renewable energy.”
Support and Infrastructure
To ensure the project’s success, the Andhra Pradesh government has committed to providing the necessary infrastructure and ecosystem, including the allocation of land at the Orvakal mega industrial hub.
The state aims to bolster India’s position in the global semiconductor market by facilitating such strategic developments.
The facility will commence operations with a production capacity of 10,000 wafers per month, with plans to scale up to 50,000 wafers per month over the next two to three years.
Strengthening India’s Semiconductor Ecosystem
This move aligns with India’s broader initiative to support semiconductor manufacturing.
The central government has been proactive in facilitating land allocation and funding for both domestic and international semiconductor companies.
Last year, the Centre initiated disbursements under its $10 billion Production Linked Incentive (PLI) scheme, supporting U.S.-based Micron Technology’s assembly, testing, monitoring, and packaging (ATMP) facility in Gujarat.
Additionally, the union cabinet approved a proposal from Kaynes Semicon to establish an outsourced semiconductor assembly and testing (OSAT) facility in Gujarat with an investment of INR 3,300 crore.
Emerging Players and Investments
India’s semiconductor sector is witnessing growing interest from investors and new players.
Fabless semiconductor design startup Mindgrove Technologies recently raised $8 million (INR 68.04 crore) in a Series A funding round led by Rocketship.vc and Speciale Invest.
Similarly, Netrasemi, another semiconductor startup, secured INR 10 crore ($1.2 million) in a Pre-Series A funding round from Unicorn India Ventures last November.
