UP Bags INR 40K Cr Commitments Under Semiconductor Policy

By Inc42 Media

SUMMARY

While Hiranandani Group’s Tarq Semiconductor has submitted a proposal to invest INR 28,440 Cr in the state, Kaynes Semicon is expected to invest INR 4,248 Cr

The proposed projects are expected to create more than 32,000 jobs in the state

The UP Semiconductor Policy 2024 offers an additional 50% capital subsidy on top of the subsidy approved by the Centre under the India Semiconductor Mission

The Uttar Pradesh government has reportedly received commitments worth INR 40,038 Cr under its new semiconductor policy that aims to incentivise chip manufacturing in the state. 

Citing a statement by Invest UP, Economic Times said that real estate major Hiranandani Group’s Tarq Semiconductor has submitted a proposal to invest INR 28,440 Cr in the state, while Kaynes Semicon is expected to invest INR 4,248 Cr. 

Other companies looking to invest under the new policy are Aditech Semiconductor and Vamasundari Investment, which have proposed investments to the tune of INR 3,751 Cr and INR 3,599 Cr, respectively. 

The proposed projects are reportedly expected to create more than 32,000 jobs in the state.

Commenting on the announcement, UP 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”.

Meanwhile, Invest UP said, “The Uttar Pradesh semiconductor policy is poised to revolutionise the industrial landscape of the state, making it a pivotal player in the global semiconductor market.” 

The nodal investment body also said that the new policy positions the state as a “competitive and attractive destination” for semiconductor investments. It added that the move will attract further investments into the state and pave the way for Uttar Pradesh to emerge as a leading industrial hub in the country.

With the new policy, the state government plans to leverage the semiconductor boom to boost economic development and technological advancement. Invest UP said that the local authorities are coordinating with the Centre and relevant stakeholders to expedite the implementation of the semiconductor policy and ensure adequate land and infrastructure for the new projects.

For the uninitiated, the Uttar Pradesh Semiconductor Policy 2024 offers an additional 50% capital subsidy on top of the capital subsidy approved by the Centre under the India Semiconductor Mission. The state policy also offers an interest subsidy of 5% per annum on investments up to INR 200 Cr. 

The state’s new semiconductor policy also covers aspects such as compound semiconductors, silicon photonics devices and integrated circuits. In addition, it also offers sops for ATMP (Assembly, Testing, Marking, and Packaging) of semiconductors, OSOT (Outsourced Semiconductor Assembly and Test), and manufacturing sensors. 

With this, Uttar Pradesh has joined a growing list of Indian states such as Gujarat, Karnataka and Tamil Nadu that have rolled out red carpets for global semiconductor giants. Banking on Centre’s production-linked-incentive (PLIs) scheme,, the states are looking to woo global chip makers and emerge as hubs of semiconductor manufacturing in the country. 

As per an Inc42 report, the homegrown semiconductor space is projected to soar to a market size of $150 Bn by 2030. 

As a result, a host of domestic and global players and conglomerates are looking to set up fab plants in India. While SaaS giant Zoho has earmarked $700 Mn for its semiconductor manufacturing plant in Tamil Nadu, US-based Micron Technology is also building an INR 22,000 Cr semiconductor testing and packaging plant in Gujarat’s Sanand.

Source: Inc42 Media