CIOInsider India Magazine

To create India's first private semiconductor fabrication facility, the Andhra Pradesh government has inked a Memorandum of Understanding with a

number of businesses,including Indichip semiconductors Ltd. of India and YITOA Microtechnology of Japan. The project will be constructed at the Orvakal Mega Industrial Park in Kurnool district at a cost of Rs. 14,000 crore. In Hyderabad, TG Bharath, Andhra Pradesh's minister of industries, commerce, and food processing, and IT minister Nara Lokesh were present when the agreement was inked.

The plant will produce silicon carbide (SiC) chips, which are essential for energy-efficient technologies like renewable energy and electric vehicles. “This state-of-the-art facility will initially produce 10,000 wafers per month, scaling up to 50,000 within 2-3 years,” said Lokesh in his post on X.

The plant is anticipated to be operational in two and a half years. It will strengthen India's capacity to produce semiconductors and support the nation's expansion of its technology sector. At a time when the world is looking for options to lessen reliance on a single place for semiconductor production, the investment will position India as a competitive competitor in the global semiconductor supply chain.