By Manish Agarwal, Vice President Laghu Udyog Bharati
- Aligning with Government of India’s Initiative, UP Becomes Fourth State to Launch Dedicated Semiconductor Provisions
- Four Major Semiconductor Manufacturing Companies Ready to Invest in UP, Proposals Submitted to Uttar Pradesh Government
Lucknow – In line with the Government of India’s initiative to promote investment in semiconductor manufacturing, the Uttar Pradesh government has introduced an independent semiconductor policy. Uttar Pradesh has now become the fourth state in India to launch dedicated provisions for semiconductor units, aiming to attract global investors to this crucial sector. The UP’s Semi-Conductor policy provides additional capital subsidy of 50 percent on the capital subsidy approved by the government of India (GOI) besides giving 5 percent per annum interest subsidy withinvestment up to Rs. 200 crores. The policy has attracted a large number of investors to UP and some of them have already intended to set up their units.
Through this policy, the Uttar Pradesh government aims to provide significant incentives and justifiable concessions to investors in the semiconductor sector. The policy is designed to facilitate the establishment of semiconductor units in the state, thereby positioning Uttar Pradesh as a central hub for the semiconductor ecosystem. This initiative is expected to generate substantial employment opportunities, develop skilled manpower, and contribute significantly to the state’s economic growth.
The policy encompasses various aspects of the semiconductor sector, including compound semiconductors such as Gallium Nitride (GaN), Silicon Carbide (SiC), and Gallium Arsenide (GaAs), as well as silicon photonics devices and integrated circuits. Additionally, it covers the manufacturing of components like ATMP (Assembly, Testing, Marking, and Packaging), OSOT (Outsourced Semiconductor Assembly and Test), ASICs (Application-Specific Integrated Circuits), MEMS (Micro-Electro-Mechanical Systems), and sensors.
According to officials at Invest UP, the agency established to foster investment and industrial development in the state, and to streamline the ‘ease of doing business’ process from filing initial intent to project implementation, the Uttar Pradesh government has received proposals for projects totaling approximately ₹40,038 crore. These projects, poised for implementation, are anticipated to create over 32,000 jobs within the state. Invest UP is diligently working to bring these proposals to fruition, ensuring a smooth and efficient transition from planning to execution. the Uttar Pradesh government has received proposals for projects worth approximately ₹40,038 crore. These projects, which are ready to be implemented, are expected to generate over 32,000 jobs in the state.Invest UP is actively working to bring these proposals to fruition.
Manoj Kumar Singh, Chief Secretary and Infrastructure cum Industrial Development Commissioner (IIDC) of Uttar Pradesh, stated that the incentives, subsidies, and facilities provided under the Uttar Pradesh Semiconductor Policy are significantly contributing to investment and job creation in this sector. He emphasized that with grounding of these projects, Uttar Pradesh soon will be emerging as a hub for Uttar Pradesh Semiconductor Policy 2024. He further said, India is expected to be $8tn economy and $100bn semiconductor market by 2030.
Sunil Kumar Sharma, Minister for Information Technology and Electronics, Government of Uttar Pradesh said, “Uttar Pradesh is making attempts to create an ecosystem to develop IT hubs. Semiconductor, which is found in almost every instrument for day-to-day life, is the spine of any economy. UP too is focusing on semiconductor manufacturing on its soil with Rs 40,000 crore investment. Four companies have shared their proposal to set up semiconductor manufacturing units in UP.”
Notable proposals include to be grounded:
Torq Semiconductor Private Limited: This company is poised to invest approximately ₹28,440 crore, with the potential to create around 11,000 jobs.
KaynexSemicon Private Limited: With an expected investment of ₹4,248 crore, this venture aims to generate employment for about 12,000 individuals.
Aditech Semiconductor Private Limited: This firm has proposed an investment of ₹3,751 crore, which is projected to create 5,500 jobs.
Vamasundari Investment Delhi Private Limited: With a planned investment of ₹3,599 crore, this project is expected to create around 3,780 jobs.
The introduction of this policy marks a significant milestone for Uttar Pradesh, as it not only aligns with national objectives but also positions the state as a competitive and attractive destination for semiconductor investments. By fostering a robust semiconductor ecosystem, the state aims to leverage its strategic advantages to boost economic development and technological advancement.
Chief Minister Yogi Adityanath emphasized the state’s commitment to providing all necessary support to investors. “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,” he stated.
The state government is also working diligently to ensure the availability of adequate land and infrastructure for these projects. Continuous coordination with the central government and relevant stakeholders is being maintained to expedite the implementation of this policy.
The Uttar Pradesh semiconductor policy is poised to revolutionize the industrial landscape of the state, making it a pivotal player in the global semiconductor market. This strategic move is expected to attract further investments and pave the way for Uttar Pradesh to emerge as a leading industrial hub in India.
