Industrial Development
Indichip Semiconductors and Yitoa Micro Sign Rs 14,000 Crore Silicon Carbide Fab MoU for Orvakal
Indichip Semiconductors Ltd, with Japan's Yitoa Micro Technology (YMTL), has signed an agreement with the Andhra Pradesh government to build India's first private semiconductor manufacturing plant. The plant's investment stands at Rs 14,000 crore, and the facility will produce Silicon Carbide (SiC) chips.
| Investment Value | Rs 14,000 crore (USD 1.4 billion) |
|---|---|
| Location | Orvakal Mega Industrial Hub, Kurnool district, part of Hyderabad–Bengaluru Industrial Corridor |
| Product Focus | Silicon Carbide (SiC) chips for energy-efficient technologies, electric vehicles, renewable energy |
| Initial Capacity | 10,000 wafers per month |
| Scaled Capacity | 50,000 wafers per month in 2–3 years |
| Facility Footprint | 130 acres |
| Direct Employment | 2,000 jobs |
| Indirect Employment | 10,000 jobs |
| Completion Timeline | Two and a half years from MoU signing (January 2025) |
| MoU Signing Date | 11 January 2025, Hyderabad |
What Happened
The memorandum of understanding (MoU) was signed by Indichip's Managing Director Piyush Bichhoriya and Saikanth Varma, CEO of the Andhra Pradesh Economic Development Board (APEDB). Witnessing the event were IT Minister Nara Lokesh and Industries Minister T.G. Bharath.
The Andhra Pradesh government is providing land at the Orvakal mega industrial hub in Kurnool, alongside infrastructure support. In a big response to the recently launched Andhra Pradesh Semiconductor Policy 2024-29, a private semiconductor manufacturing facility will come up at Orvakal Mega Industrial Hub in Kurnool district with an investment of Rs14,000 crore.
Strategic Context
This massive semiconductor project, the first of its kind in India, is set to be established in Andhra Pradesh, driven by the brand leadership of Chief Minister @ncbn Garu and the efforts of Minister @naralokesh garu. Andhra Pradesh launched a semiconductor policy in November 2024 to promote the state as a hub for electronics and semiconductor manufacturing.
Production Plan and Scale-Up
The facility's initial production capacity is set at 10,000 wafers per month, with plans to scale up to 50,000 wafers per month in two to three years. Located in the Orvakal Mega Industrial Hub, the facility will focus on producing silicon carbide (SiC) chips, catering to the rising demand for energy-efficient technologies, electric vehicles, and renewable energy applications.
Employment and Economic Impact
The semiconductor plant will be spread across 130 acres and is projected to provide direct employment to 2,000 people and indirect employment to 10,000 individuals. The ambitious project in Orvakal is expected to be completed within two and a half years.
About the Partners
Yitoa Micro Technology Corporation, established in 2003 and based in Kofu-shi, Japan, is a manufacturer and supplier of semiconductors and MEMS products. Indichip Semiconductors Ltd is the Indian partner leading the joint venture for this greenfield fab facility.
Development phases
Frequently asked questions
Why is Orvakal chosen for this semiconductor fab?
The Orvakal node in Kurnool District, spanning 2,621 acres, is being developed under the Hyderabad-Bengaluru Industrial Corridor. The site is strategically located with access to NH40, NH44, Kurnool Bypass, ensuring robust road connectivity. The state also provides a supportive regulatory environment and committed land allocation.
What is Silicon Carbide (SiC) and why is it important?
The facility will focus on producing silicon carbide (SiC) chips, catering to the rising demand for energy-efficient technologies, electric vehicles, and renewable energy applications. SiC chips are critical for next-generation power electronics and sustainable energy systems.
Is this the first semiconductor fab of its kind in India?
Indichip Semiconductors Ltd, with Japan's Yitoa Micro Technology (YMTL), has signed an agreement with the Andhra Pradesh government to build India's first private semiconductor manufacturing plant.
What is the role of Andhra Pradesh government?
The Andhra Pradesh government is providing land at the Orvakal mega industrial hub in Kurnool, alongside infrastructure support. The project aligns with the state's Semiconductor Policy 2024–29 to position Andhra Pradesh as a hub for electronics and semiconductor manufacturing.
When will production begin?
The ambitious project in Orvakal is expected to be completed within two and a half years. Based on the MoU signing date of 11 January 2025, full commercial operation is targeted for mid-2027.
How many jobs will this create?
The semiconductor plant will be spread across 130 acres and is projected to provide direct employment to 2,000 people and indirect employment to 10,000 individuals.
Sources
- Indichip Semiconductors Partners Andhra Pradesh for Rs 14,000-Crore Semiconductor Facility
- Rs 14K-Cr Semicon Chip Unit Coming Up In AP
- Indichip Semiconductors to build $1.4 billion SiC facility
- Indichip to Set Up Rs 14000 Cr Semiconductor Plant in Andhra
- Indichip Semiconductors Inks Deal with Andhra for Rs 14,000 Crore Facility
- Indichip to construct $1.4bn silicon carbide fab
- Orvakal Andhra Pradesh – NICDC
- T G Bharath – MoU announcement on X
- Nara Lokesh Proposes Semiconductor Unit in AP, Taps Singapore for Technical Support
- Massive Semiconductor Factory to be Set Up in Kurnool