In a surprising development, a semiconductor fabrication company signed an agreement with the Chandrababu Naidu-led government in Andhra Pradesh even before it was formally incorporated by the Registrar of Companies.
Adding to the intrigue, the company’s authorized share capital is a mere ₹1 crore, yet it has proposed to establish a facility with an investment of ₹14,000 crore, raising doubts about its credibility.
The company in question, Indichip Semiconductors Ltd., signed a Memorandum of Understanding (MoU) with the Andhra Pradesh government in December in the presence of the state's Information Technology Minister, Nara Lokesh.
Indichip Semiconductors Ltd. announced its plans to collaborate with Japan’s Yitoa Micro Technology Ltd.
(YMTL) to set up India's first private semiconductor fabrication facility at the Orvakal Mega Industrial Hub in Kurnool, with a proposed investment of ₹14,000 crore.
According to the agreement, the facility will specialize in the production of Silicon Carbide (SiC) chips, which are crucial for energy-efficient technologies such as electric vehicles and renewable energy systems.
“The establishment of this facility is expected to boost local employment, drive technological innovation, and contribute significantly to India’s self-reliance in the semiconductor sector,” said Lokesh.
However, what raises eyebrows is that representatives of Indichip Semiconductors Ltd. first met with Lokesh on December 21, 2024, while the company was officially incorporated only later, on January 2, 2025, under the Kanpur Registrar of Companies (ROC).
The sequence of events, where the company engaged in discussions and agreements with the government before its formal incorporation, has led to speculation regarding the legitimacy of the deal and potential financial irregularities.
This development has become a topic of intense discussion in Andhra Pradesh’s IT and industrial sectors, with stakeholders keenly awaiting further updates on the matter.
