In a major development for Andhra Pradesh, a massive semiconductor manufacturing unit will be established in the Orvakal Industrial Park, located in the combined Kurnool district. The project, worth ₹14,000 crore, is set to become one of the largest investments in the semiconductor sector in India. Industries, Commerce, and Food Processing Minister TG Bharat announced that a Memorandum of Understanding (MoU) has been signed between the Andhra Pradesh government, Japan-based Ito Micro Technology Corporation, and Indian companies HYDRAIS Group and BN Group. The agreement was formalized in Hyderabad in the presence of Minister Nara Lokesh.
Minister TG Bharat highlighted that this semiconductor plant will be the first of its kind in the state and a landmark initiative for the country. He credited Chief Minister Chandrababu Naidu’s vision and Minister Lokesh’s efforts in bringing this project to Andhra Pradesh. Last month, representatives from the companies discussed the investment with Minister Lokesh in Amaravati. With the agreement now finalized, the project is expected to be completed within two and a half years.
The establishment of this semiconductor factory is expected to generate thousands of direct and indirect employment opportunities. The Orvakal Industrial Park in the Rayalaseema region has been identified as an ideal location for such investments. Alongside the semiconductor project, several other industries are also expected to set up operations in the area. This initiative aligns with Chief Minister Chandrababu Naidu’s goal of ensuring balanced development across all state regions.
The semiconductor plant will be spread across 130 acres and is projected to provide direct employment to 2,000 people and indirect employment to 10,000 individuals. As part of the state’s focus on improving the ease of doing business, the government has planned to commence production within two and a half years. The recent MoU marks a significant step toward achieving this goal. Once operational, this facility will become the largest semiconductor manufacturing unit in India, setting a new benchmark in the industry.
The project is a testament to Andhra Pradesh’s commitment to fostering industrial growth and creating job opportunities. By attracting such high-value investments, the state aims to position itself as a hub for advanced technology and manufacturing. The semiconductor plant is expected to play a pivotal role in boosting the local economy and contributing to the overall development of the Rayalaseema region.
With this landmark project, Andhra Pradesh is set to make significant strides in the semiconductor sector, paving the way for technological advancements and economic growth.
