News: Microelectronics
29 January 2025
Indichip to construct $1.4bn silicon carbide fab
India’s Indichip Semiconductors Ltd has signed a memorandum of understanding (MoU) with the government of Andhra Pradesh state to construct ‘India’s first private semiconductor manufacturing facility’.
Dedicated to manufacturing silicon carbide (SiC) power devices, the commitment aligns with the Indian government’s ‘self-reliant India’ (‘Atma-nirbhar Bharat’) initiative, which aims to reduce dependency on imports and foster local capabilities. By driving local innovation and production, Indichip aims to deliver advanced technology that not only meets international standards but also addresses local needs.
The local production of SiC devices also fills a gap in India’s semiconductor supply chain, allowing the country to boost its self-sufficiency in a sector facing high demand. Currently, India imports over 90% of its semiconductor components.
TG Bharath, Industries Minister for the Andhra Pradesh administration confirmed in a posting on X that the memorandum of understanding was worth Rs14,000 crore (US$1.4bn) and that the site would be located in Kurnool district at the Orvakal Mega Industrial Hub, which is part of the Hyderabad Bengaluru Industrial Corridor (HBIC).
The agreement was brokered by the government of Andhra Pradesh, along with representatives of Indichip and its Japanese strategic technology transfer partner Yitoa Micro Technology Corp (YMTL). Andhra Pradesh launched a semiconductor policy in November 2024 to promote the state as a hub for electronics and semiconductor manufacturing.
The MoU was signed between Indichip’s managing director Piyush Bichhoriya and Andhra Pradesh Economic Development Board’s CEO Saikanth Varma in the presence of Nara Lokesh (minister for information technology, electronics and HRD), TG Bharath (minister for industries), and representatives from Indichip and YMTL.
The fabrication plant will launch with an initial production capacity of 10,000 wafers per month, rising to 50,000 wafers per month within 2–3 years.
Indichip’s initial efforts will be on 6-inch SiC wafers, with plans to transition to 8-inch wafers in the future, not only enhancing performance but also aligning with global production standards.
