Bolstering India’s Semiconductor Ecosystem with Mega Investments
The Uttar Pradesh government has greenlit financial incentives worth over ₹8,500 crore for two cutting-edge semiconductor projects under the Semiconductor Policy-2024. This strategic move is expected to attract investments totaling ₹32,146 crore, positioning the state as a key player in India’s burgeoning semiconductor ecosystem.
Key Projects and Investment Plans
1. Tarq Semiconductors Pvt Ltd (Hiranandani Group)
- Investment: ₹28,440 crore
- Location: Sector 28
- Focus Areas:
- Compound semiconductors
- Silicon photonics devices
- Integrated circuits
- Optoelectronic components
- Job Creation: 1,000 direct and 10,000 indirect jobs
2. Vama Sundari Investments (Delhi) Pvt Ltd
- Investment: ₹3,706 crore
- Location: Sector 10
- Focus Areas:
- Display Driver Integrated Circuits (DDIC)
- Semiconductor assembly
- Job Creation: 3,780 direct and indirect jobs
Strategic Advantage: Proximity to Noida International Airport
Both projects are strategically located near the upcoming Noida International Airport, enhancing connectivity and logistics capabilities. This proximity is expected to foster smoother operations and integrate Uttar Pradesh into India’s advanced semiconductor manufacturing hub.
State Support: Incentives and Benefits
The Uttar Pradesh government has issued Letters of Comfort to both companies, detailing substantial incentives to support project development. These include:
For Tarq Semiconductors Pvt Ltd
- Capital Subsidy: ₹7,037 crore
- Land Rebate: 75% discount (₹321 crore)
- Stamp Duty & Registration Fee Exemptions: ₹30 crore
- Additional Benefits:
- 10-year electricity duty exemption
- Dual power grid support
- Subsidies on water and power consumption
For Vama Sundari Investments (Delhi) Pvt Ltd
- Capital Subsidy: ₹919.31 crore
- Land Rebate: ₹124.37 crore
- Stamp Duty Exemptions: ₹1.16 crore
- Additional Benefits:
- Similar infrastructure and utility incentives as Tarq Semiconductors
Both companies will also receive support for workforce development, including:
- Internships: Annual sponsorship for 500 engineering students
- Talent Attraction Grant: ₹1 crore per unit
Central Government Approval Awaited
While the Uttar Pradesh government has extended significant support, both projects require final approval from the central government before commencing operations.
Darshan Hiranandani, CEO of the Hiranandani Group, emphasized their readiness, stating,
“We need final approval from the Government of India, which is the last step, and we will start work on the ground as soon as we receive it.”
Economic and Employment Impact
These semiconductor projects are anticipated to generate substantial economic growth and employment opportunities:
- Direct Jobs: 4,780
- Indirect Jobs: Over 10,000
- Skill Development: Boosting local talent through training and internships
FAQs: Semiconductor Projects in Uttar Pradesh
1. What are the two key semiconductor projects approved in Uttar Pradesh?
The projects are by Tarq Semiconductors Pvt Ltd and Vama Sundari Investments (Delhi) Pvt Ltd, focused on semiconductor manufacturing and assembly.
2. What is the total investment involved?
A combined investment of ₹32,146 crore is expected.
3. What incentives has the UP government provided?
Key incentives include capital subsidies, land rebates, tax exemptions, electricity duty waivers, and workforce development support.
4. What is the significance of these projects for Uttar Pradesh?
These projects aim to position Uttar Pradesh as a leader in India’s semiconductor ecosystem, driving economic growth and creating thousands of jobs.
5. When will the projects commence operations?
Construction will begin once the central government grants final approval.
6. How do these projects align with the Semiconductor Policy-2024?
The initiatives support the policy’s goals of fostering domestic manufacturing, enhancing infrastructure, and generating employment in the semiconductor sector.
7. How will the proximity to Noida International Airport benefit these projects?
The location ensures efficient logistics and connectivity, bolstering the operational efficiency of the semiconductor facilities.
Conclusion
The Uttar Pradesh government’s proactive measures under the Semiconductor Policy-2024 underscore its commitment to advancing India’s semiconductor industry. By fostering innovation, providing robust incentives, and leveraging strategic locations, these projects pave the way for economic growth and technological self-reliance. With final approvals pending, Uttar Pradesh is poised to become a vital hub in India’s semiconductor ecosystem.