- More than 12 companies have already showcased interest in establishing semiconductor plants in the state
- Under the new policy, investors would get a 100 per cent stamp duty waiver on registration of land or leasehold
The Uttar Pradesh (UP) government has shared its plans to explore the Centre’s $10 billion production-linked incentive (PLI) scheme to promote semiconductor fabrication in India.
As the domestic sector is showcasing huge growth of $100 billion by 2025 from $10 billion in 2020, the state has made an agenda to become a leading player in the industry. The UP government has recently shared its fresh policy for chip manufacturing — the UP Semiconductor Policy 2024 — on the lines of Gujarat, Odisha and Tamil Nadu.
The UP government has shared that more than 12 companies have already showcased interest in establishing semiconductor plants in the state.
Under the new policy, investors would get a 100 per cent stamp duty waiver on registration of land or leasehold, shared UP Cabinet Minister Yogendra Upadhyay. The state would also provide a 75 per cent land subsidy on 200 acres. On additional land, the subsidy would be 30 per cent.
If a company invest almost Rs 200 crore, it will be eligible for a 5% annual interest subsidy. The company will get a subsidy of up to Rs 10 crore for research and development.
Under the new policy, Uttar Pradesh anticipates substantial investments that could boost the state’s socioeconomic growth and create employment opportunities for the aspiring youth. The central Production-Linked Incentive (PLI) framework targets accelerating the entire semiconductor value chain, encompassing microchip design, manufacturing, packaging, and testing. Projections indicate a robust compound annual growth rate of over 12%, with the global semiconductor market poised to reach $1.38 trillion by 2029, surging from $574 billion in 2022.
