Indichip Semiconductors Ltd along with its joint venture partner Yitoa Micro Technology (YMTL) from Japan inked an agreement with the Andhra Pradesh government to establish India's first private semiconductor manufacturing facility with an investment of Rs 14,000 crore.

This cutting-edge facility will focus on manufacturing Silicon Carbide (SiC) chips, contributing to India's technological advancement and sustainability goals.

The southern state pledged to provide land at Orvakal mega industrial hub in Kurnool, along with the necessary infrastructure and ecosystem to make this project a success.

The new SiC fab facility will begin with a production capacity of 10,000 wafers per month, ramping up to 50,000 wafers per month within two to three years.

This strategic investment is aligned with India's Atma Nirbhar Bharat vision and addresses the growing global demand for energy-efficient technologies, electric vehicles, and renewable energy solutions, said an official press release.

The deal was struck in the presence of Andhra Pradesh IT Minister Nara Lokesh and Industries Minister TG Bharat.