Over ₹320 billion investment proposals including Tarq Semiconductors and Kaynes Semicon await approval under UP Semiconductor Policy 2024.
The Uttar Pradesh cabinet has approved a fresh package of incentives to attract semiconductor companies committing capital investments of ₹30 billion or more, signalling the state’s intent to emerge as a key node in India’s semiconductor ecosystem. The measures aim to lower operational costs, improve long term project viability and accelerate high technology manufacturing.
Under the approved framework, eligible companies will receive interest subsidies, GST exemptions for up to ten years, power tariffs capped at ₹2 per unit for a defined period, EPF reimbursement for in-state professionals up to ₹2000 per month, and concessional water charges. The decision is accompanied by administrative backing for Global Capability Centres, reinforcing Uttar Pradesh’s broader ambition to draw technology and innovation hubs.
The move aligns closely with the national India Semiconductor Mission, which offers central fiscal support of up to 50% of project costs. Momentum has already been boosted by the Union Cabinet’s recent approval of a ₹37 billion HCL Foxconn semiconductor unit near the upcoming Jewar International Airport. Government data shows over ₹320 billion worth of proposals, including investments from Tarq Semiconductors and Kaynes Semicon, currently under review under the Semiconductor Policy 2024.
Uttar Pradesh’s semiconductor strategy builds on its Electronics Manufacturing Policy 2020 and expands support to fabs, packaging units, sensors and silicon photonics. Incentives extend to land rebates, electricity duty exemptions, skilling initiatives and R&D support.
With strong connectivity, a large skilled workforce, established electronics clusters and improving ease of doing business, the state is positioning itself as a competitive destination for semiconductor manufacturing and innovation within India’s evolving technology landscape.
