In a significant push towards India’s journey to becoming a global leader in chip manufacturing, Indichip Semiconductors Limited and Japanese joint venture partner Etoya Micro Technology Limited (YMTL) have signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh to establish the country's first private semiconductor manufacturing facility, with an investment of over Rs 14,000 crore at Orvakal Industrial Park in Kurnool district.

This state-of-the-art facility will focus on manufacturing silicon carbide (SiC) chips to aid India's technological advancement and sustainability goals. The Government of Andhra Pradesh's Semiconductor and Display Fab Policy 2024-29, launched in November 2024, intends to develop the state into an electronics and semiconductor manufacturing powerhouse. The new SiC fab facility will begin production with a capacity of 10,000 wafers per month, increasing to 50,000 in 2-3 years.

This strategic investment is in line with India's Atmanirbhar Bharat and encounters the growing global demand for energy-efficient technologies, electric vehicles and renewable energy solutions. 

On Saturday, Piyush Bichhoriya, Managing Director of Indichip, and Saikanth Varma, CEO of the Andhra Pradesh Economic Development Board, signed the MoU (Memorandum of Understanding) in the presence of HRD and IT Minister Nara Lokesh and Industries and Commerce Minister TG Bharath.

At the event, Lokesh said, “This investment is a testament to Andhra Pradesh’s ability to attract cutting-edge 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.”

Industry Minister TG Bharath stated that the development of the SiC Fab facility will not only generate thousands of jobs and encourage innovation and growth in the region's ancillary industries, transforming AP into a manufacturing powerhouse.

Piyush Bichhoriya stated, “This initiative symbolises our commitment to nation-building through technological innovation. We aim to strengthen India’s manufacturing ecosystem by focusing on silicon carbide chips and contribute to the global semiconductor industry.”

“This collaboration will not only create cutting-edge technology but also pave the way for a sustainable future by addressing the growing need for energy-efficient solutions in electric vehicles and renewable energy,” spoke Sandeep Garg, Director of Indichip.