Promising 14,780 jobs and boosting the state’s tech industry, Uttar Pradesh greenlights ₹85 billion in incentives for semiconductor projects by Tarq Semiconductors and Vama Sundari Investments in Noida.
The Uttar Pradesh government has approved over ₹85 billion in financial incentives for two semiconductor manufacturing projects under its Semiconductor Policy-2024. These projects, proposed by Tarq Semiconductors Pvt Ltd and Vama Sundari Investments (Delhi) Pvt Ltd, are expected to attract a total investment of ₹321.46 billion.
Officials stated that the initiatives aim to stimulate economic growth and create job opportunities near the Noida International Airport.
Tarq Semiconductors, a subsidiary of the Hiranandani Group, plans to invest ₹284.4 billion in Sector 28. This facility will focus on manufacturing compound semiconductors, silicon photonics devices, integrated circuits, and optoelectronic components.
In contrast, Vama Sundari Investments intends to invest ₹37.06 billion to establish a facility in Sector 10 to produce display driver integrated circuits (DDIC) and semiconductor assembly.
These ventures are expected to generate substantial employment. Tarq Semiconductors aims to create 1000 direct and 10,000 indirect jobs, while Vama Sundari Investments targets creating 3780 direct and indirect jobs. However, both projects still require final approval from the central government before they can begin operations.
The Uttar Pradesh government has issued Letters of Comfort to both companies, outlining the financial incentives available under the Semiconductor Policy. These include capital subsidies, land rebates, and tax exemptions, which will be granted after central government approval.
Tarq Semiconductors has been awarded a capital subsidy of ₹70.37 billion, a 75% rebate on land costs worth ₹3.21 billion, and a 100% exemption on stamp duty and registration fees, totalling ₹300 million.
Vama Sundari Investments received a capital subsidy of ₹9.19 billion, a land rebate of ₹1.24 billion, and stamp duty exemptions amounting to ₹11.6 million.
Additionally, both companies will benefit from a ten-year exemption on electricity duties, dual power grid support, and water and power consumption subsidies. Special provisions are also in place for workforce development, including annual internship opportunities for 500 engineering students and a ₹10 million talent attraction grant for each unit.
The proximity of these projects to the Noida International Airport provides a strategic advantage for their integration into India’s growing semiconductor industry. Darshan Hiranandani, CEO of the Hiranandani Group, confirmed that they are ready to begin construction, pending final approval from the central government. Once received, work on the ground will commence immediately.
