India’s 1st Private Semiconductor Facility to Come Up in Andhra Pradesh

The Andhra Pradesh government has signed an MoU with several companies, including Japan-based YITOA Microtechnology and India’s Indichip Semiconductors Ltd., to establish India’s first private semiconductor fabrication facility. 

The project will be built at the Orvakal Mega Industrial Park in Kurnool district at an investment of ₹14,000 crore. The agreement was signed in Hyderabad in the presence of TG Bharath, Andhra Pradesh minister for industries, commerce and food processing, and IT minister Nara Lokesh. 

The facility will produce silicon carbide (SiC) chips, which are critical for energy-efficient technologies such as electric vehicles and renewable energy. “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 facility is expected to be operational within two-and-a-half years. It will boost India’s semiconductor manufacturing capabilities and contribute to the growth of the country’s tech ecosystem.

The Government’s Vision 

“This investment aligns with India’s Atma Nirbhar Bharat vision and reinforces Andhra Pradesh’s ability to attract cutting-edge industries through innovative policies and robust infrastructure,” Lokesh expressed. 

He emphasised that the project plays a significant role in positioning Andhra Pradesh as a global semiconductor hub, “demonstrating the ability to attract industries through innovative policies, world-class infrastructure, and a focus on nurturing talent.”

Bharath credited chief minister N Chandrababu Naidu for ensuring balanced development across the state. 

Expressing his views regarding this collaboration, he said, “This is a testament to the growing confidence of international and domestic companies in Andhra Pradesh. The semiconductor sector will not only stimulate industrial growth but also create significant employment opportunities for the local population.” 

The investment will position India as a competitive player in the global semiconductor supply chain at a time when the world is seeking alternatives to reduce reliance on a single region for semiconductor production.

Orvakal as an Industrial Hub

Bharath highlighted that the project will create thousands of jobs and attract further industrial investments to the Orvakal Industrial Park region. To ensure its success, the state will provide the required land, infrastructure, and an enabling ecosystem.

The Orvakal Mega Industrial Hub, which covers 2,621 acres, received approval from the central government and funding of ₹2,786 crore in September last year. The hub is projected to employ approximately 45,000 people and attract a range of industries, including a proposed 300-acre drone manufacturing and research unit. 

Bharath stated, “This is not just an investment in Andhra Pradesh; it’s an investment in India’s future as a leader in high-tech innovation.”