Uttar Pradesh receives investment proposals worth Rs 40,000 crore under its new semiconductor policy

The government of Uttar Pradesh has recently received proposals totalling around Rs 40,038 crore under its new semiconductor policy.

The policy aims to incentivize semiconductor manufacturing and attract global investments to the state, its investment promotion agency Invest UP said in a statement.

Which companies are investing and how much?

Several notable companies have put forward significant investment proposals under this new policy. The Hiranandani group's Tarq Semiconductor is expected to invest Rs 28,440 crore, creating around 11,000 jobs.

Kaynes Technologies subsidiary Kaynes Semicon plans to invest Rs 4,248 crore, which is expected to generate employment for about 12,000 individuals.

Aditech Semiconductor has proposed an investment of Rs 3,751 crore, projected to create 5,500 jobs. Lastly, Vamasundari Investment Delhi plans to invest Rs 3,599 crore, potentially creating around 3,780 jobs.

Providing several lucrative incentives

The Uttar Pradesh Semiconductor Policy provides several lucrative incentives to attract investors. These include an additional capital subsidy of 50% on the capital subsidy approved by the central government under the India Semiconductor Mission.

Additionally, there is a 5% per annum interest subsidy on investments up to Rs 200 crore. These incentives aim to make Uttar Pradesh a competitive and attractive destination for semiconductor investments, aligning with national objectives and positioning the state as a significant player in the global semiconductor market.

Addressing a wide range of industry aspects

The policy addresses a wide range of industry aspects, covering both materials and manufacturing processes. It includes compound semiconductors such as Gallium Nitride (GaN), Silicon Carbide (SiC), and Gallium Arsenide (GaAs), as well as silicon photonics devices and integrated circuits.

Manufacturing activities such as Assembly, Testing, Marking, and Packaging (ATMP), Outsourced Semiconductor Assembly and Test (OSAT), Application-Specific Integrated Circuits (ASICs), Micro-Electro-Mechanical Systems (MEMS), and sensor production are also encompassed by the policy.

Leadership comments

The Uttar Pradesh government, led by Chief Minister Yogi Adityanath, is actively working to bring these proposals to fruition. The government is also focused on ensuring the availability of adequate land and infrastructure for these projects and coordinating with the central government and relevant stakeholders to expedite the implementation of the policy.

Sunil Kumar Sharma, Minister for Information Technology and Electronics, highlighted the state’s efforts to create an ecosystem for developing IT hubs and focusing on semiconductor manufacturing. 

Manoj Kumar Singh, Chief Secretary and Infrastructure cum Industrial Development Commissioner (IIDC) of UP, emphasized the significant contributions of the incentives, subsidies, and facilities provided under the policy to investment and job creation in the sector.

Chief Minister Yogi Adityanath said, “The semiconductor policy is a testament to our dedication to creating a conducive environment for technological innovation and industrial growth in Uttar Pradesh. We are focused on facilitating seamless investment processes and ensuring timely approvals for projects.”