The state of Andhra Pradesh has taken a significant step forward in its mission to become a hub for semiconductor manufacturing with the signing of a Memorandum of Understanding (MoU) between Indichip Semiconductors and Yitoa Micro Technology Corporation (YMTC). The agreement, which was formalized in Hyderabad, will facilitate the production of silicon carbide SiC chips, bolstering India’s technological prowess and commitment to sustainability.The project cost will be of Inr 14000 Crore.
Key Components of the MoU
The SiC fab facility, which will be constructed in the Orvakal Mega Industrial Hub in Kurnool, will have an initial production capacity of 10,000 wafers per month, with plans to scale up to 50,000 wafers monthly within the next two to three years. This strategic investment aligns with the Aatmanirbhar Bharat vision, addressing the global demand for energy-efficient technologies, electric vehicles, and renewable energy solutions.
Aligning with State Semiconductors Policy
The MoU demonstrates Andhra Pradesh’s commitment to its semiconductor policy, which was unveiled in November 2024. IT Minister Nara Lokesh highlighted the significance of this investment, stating, “This investment showcases Andhra Pradesh’s ability to attract cutting-edge industries through innovative policies and robust infrastructure.” The policy aims to transform the state into a leading destination for electronics and semiconductor manufacturing.
Job Creation and Industry Growth
The SiC fab facility is expected to create thousands of jobs and drive innovation in the region. Industries Minister T.G. Bharath emphasized the importance of this project, stating, “The SiC fab would create thousands of jobs, drive innovation, and support the growth of ancillary industries in the region.” The state government will provide necessary infrastructure and ecosystem support to facilitate the smooth operation of the facility.
Indichip Semiconductors’ Commitment to Nation Building
Indichip Semiconductors’ Managing Director, Piyush Bichhoriya, reiterated the company’s commitment to nation-building through technological innovation, stating, “This collaboration not only strengthens India’s manufacturing ecosystem but also addresses global needs for energy-efficient solutions.” With this initiative, Andhra Pradesh is poised to emerge as a leading destination for semiconductor and electronics manufacturing, furthering India’s technological progress and sustainability efforts.
Broader Implications of the MoU
The signing of the MoU between Indichip Semiconductors and YMTC underscores Andhra Pradesh’s ability to attract cutting-edge industries through innovative policies and robust infrastructure. As the state continues to develop its semiconductor ecosystem, it is likely to create new opportunities for growth and innovation in the region. With this vision, Andhra Pradesh is set to emerge as a significant player in the global semiconductor industry.
