The Andhra Pradesh government on Monday, January 13, signed a Memorandum of Understanding (MoU) with Indichip Semiconductors Limited and its joint venture (JV) partner Yitoa Micro Technology Limited (YMTL), a Japan based company for setting up a semiconductor manufacturing facility.
The Sillicon Carbide (SiC) fab facility will begin with a production capacity of 10,000 wafers per month, ramping up to 50,000 wafers within 2-3 years. The MoU was signed between managing director of Indichip Piyush Bichhoriya, and the CEO of Andhra Pradesh Economic Development Board Saikanth Varma.
"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," said AP Human Resources Development minister Nara Lokesh.
The facility will be set up with an investment of over Rs 14,000 crore in the Orvakal Mega Industrial Hub in Kurnool.
The Telugu Desam Party (TDP) led state government announced a separate policy called the Semiconductor and Display Fab policy 2024-29 for semiconductor manufacturing in November 2024 to promote the electronics sector in the state.