
In a landmark move aligning with the Make in India initiative, Indichip, a prominent player in the semiconductor industry, has announced plans to set up a state-of-the-art Semiconductor Manufacturing Facility in Andhra Pradesh. This development is a significant milestone in India’s journey toward becoming a global hub for electronics manufacturing and reducing dependence on semiconductor imports.
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.
India’s focus on achieving self-reliance in the semiconductor industry has been growing rapidly, driven by increasing demand from sectors such as electronics, automotive, telecommunications, and healthcare. The global semiconductor market, valued at over $600 billion, presents immense opportunities, and India is positioning itself as a key contributor to this lucrative industry.
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 the next two-three years.
Semiconductor Manufacturing Facility
Andhra Pradesh, known for its business-friendly policies and robust infrastructure, was a natural choice for the Semiconductor Manufacturing Facility. The state offers seamless connectivity through its ports and industrial corridors, abundant power resources, and a skilled workforce.
Read More: https://www.varindia.com/public/news/india-semiconductor-industry-is-on-growth-trajectory
Indichip’s project involves a significant investment, with reports suggesting several thousand crores dedicated to the facility. This investment underscores the company’s commitment to advancing India's capabilities in electronics manufacturing and contributing to the global semiconductor market.
This initiative seems to be in line with the Indian government’s Make in India program, which seeks to establish India as a global manufacturing hub. By producing high-performance semiconductor chips domestically, Indichip’s facility will help reduce reliance on imports, strengthen India’s supply chain resilience, and enhance its competitiveness in the global semiconductor industry.
The move also supports the government’s broader vision under the India Semiconductor Mission (ISM), which aims to develop a vibrant semiconductor ecosystem by providing financial incentives and fostering research and development.
The facility is expected to create thousands of direct and indirect employment opportunities, offering high-skilled jobs to engineers, technicians, and researchers. Additionally, it will attract a network of ancillary industries, including chip testing, packaging, and equipment manufacturing, further boosting the local economy.
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