Indichip Semiconductors Ltd, in partnership with Japan’s Yitoa Micro Technology (YMTL), has signed an agreement with the Andhra Pradesh government to establish a semiconductor manufacturing facility with an investment of Rs 14,000 crore. The facility, to be located at the Orvakal mega industrial hub in Kurnool, will focus on producing Silicon Carbide (SiC) chips.

According to a report by Press Trust of India, the facility will begin operations with a production capacity of 10,000 wafers per month, scaling up to 50,000 wafers per month within two to three years. SiC chips are widely used in energy-efficient technologies, electric vehicles, and renewable energy systems.

The Andhra Pradesh government has committed to providing land and necessary infrastructure to support the project. The agreement was finalized in the presence of state IT Minister Nara Lokesh and Industries Minister TG Bharat.

The investment aligns with India’s policy initiatives aimed at enhancing domestic manufacturing capabilities in the semiconductor sector and meeting global demand for advanced technologies.