The Uttar government Pradesh aims to attract global investors through a new scheme to incentivise local chip-making.
According to a statement from Invest UP, the state government has received semiconductor project proposals totalling approximately Rs 400.38 billion under its new policy to encourage chip manufacturing and draw worldwide investments to the state.
It says Tarq Semiconductor from the Hiranandani group plans to invest Rs 284.40 billion, while Kaynes Semicon, a subsidiary of Kaynes Technologies, aims to invest Rs 42.48 billion. Aditech Semiconductor has proposed an investment of Rs 37.51 billion, and Vamasundari Investment Delhi intends to invest Rs 35.99 billion.
These projects are anticipated to generate more than 32,000 jobs in the state.
The new policy includes a 50% additional capital subsidy on the centre’s subsidy under the India Semiconductor Mission and a 5% annual interest subsidy for investments up to Rs 200 crore.
It covers various technologies such as compound semiconductors, silicon photonics devices, integrated circuits, and manufacturing 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.
Invest UP stated that the Uttar Pradesh semiconductor policy will transform the state’s industrial landscape. This initiative is set to attract further investments, following the examples of Gujarat, Karnataka, and Tamil Nadu, which have also implemented similar semiconductor policies to attract chip manufacturers.
Regarding this, UP’s CM Yogi Adityanath testified that the state government is facilitating land and infrastructure requirements for these projects and collaborating with the central government and stakeholders to ensure prompt policy implementation.
Sunil Kumar Sharma, UP’s Minister for Information Technology and Electronics, commented that the state aims to build an ecosystem for IT hubs and recognises semiconductors as essential to the economy, powering everyday devices.
