Indichip To Build Semiconductor Manufacturing Facility In Andhra

Indichip To Build Semiconductor Manufacturing Facility In Andhra

SUMMARY

With an investment of INR 14,000 Cr, the semiconductor facility will focus on manufacturing Silicon Carbide (SiC) chips

To establish the SiC fab facility, the Andhra Pradesh government would provide land at Orvakal mega industrial hub in Kurnool along with necessary infrastructure and ecosystem

The new facility will begin with a production capacity of 10,000 wafers per month that will go up to 50,000 wafers per month over two-three years

Indichip Semiconductors, along with its venture partner Japan’s Yitoa Micro Technology (YMTL), has signed an MoU with the government of Andhra Pradesh.  

With an investment of INR 14,000 Cr, the semiconductor facility will focus on manufacturing Silicon Carbide (SiC) chips. 

Andhra Pradesh IT minister Nara Lokesh in a post on X said, “…this state-of -the-art facility will specialise in producing silicon carbide (SiC) chips, essential for energy-efficient technologies like electric vehicles and renewable energy.”

To establish the SiC fab facility, the Andhra Pradesh government would provide land at Orvakal mega industrial hub in Kurnool along with necessary infrastructure and ecosystem. 

The minister also said that the state’s government will provide full support to ensure the project’s success in order to strengthen India’s position in the global semiconductor ecosystem. 

The new facility will begin with a production capacity of 10,000 wafers per month that will go up to 50,000 wafers per month over two-three years. 

The development comes at a time when the Indian government in a boost to the semiconductor sector is facilitating land allocation and funding to Indian and international semiconductor players to set up their fabrication plants. 

Earlier last year, the Centre started the disbursement process for US-based chipmaking giant Micron under its $10 Bn PLI scheme to support the establishment of the company’s assembly, testing, monitoring, and packaging (ATMP) plant in Gujarat.

Further, the union cabinet approved Kaynes Semicon’s proposal to set up its outsourced semiconductor assembly and testing (OSAT) facility in Gujarat with an investment of INR 3,300 Cr. 

Besides, several new players are entering the semiconductor market in the country and grabbing investors’ attention. For instance, Fabless semiconductor design startup Mindgrove Technologies last month raised $8 Mn (INR 68.04 Cr) in its Series A funding round co-led by Rocketship.vc and Speciale Invest. 

In November last year, semiconductor startup Netrasemi raised INR 10 Cr (around $1.2 Mn) in a Pre-Series A funding round from Unicorn India Ventures.

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