After Gujarat and Assam, UP to host semiconductor fabrication units
Union Minister for Electronics and IT, Ashwini Vaishnaw, has announced that Uttar Pradesh will soon be home to semiconductor fabrication facilities. This development was revealed at a press briefing during the Semicon India 2024 event today. The move aligns with the state's strategic plan to become a hub for semiconductor manufacturing, and follows similar initiatives by Gujarat and Assam.
UP to offer capital subsidy for manufacturing
UP's Chief Minister Yogi Adityanath has pledged a capital subsidy of up to 25% for companies setting up semiconductor fabs in the state. This state subsidy, coupled with the central government's 50% capex support, could provide these units with up to 75% in total capital subsidies. Additionally, the state will offer land subsidies and bring support schemes, specifically for Fortune 500 companies and those attracting foreign direct investment (FDI).
Centre approves 5 projects
The Centre has approved five semiconductor projects, with construction already underway on two of them. The remaining three are set to commence soon. The UP government has received four to five proposals involving an investment of approximately ₹40,000 crore. These developments mark a significant step forward in India's journey toward becoming a global leader in the semiconductor industry.
Phase 2.0 of semiconductor program to focus on ecosystem expansion
Vaishnaw stated that the first phase of India's semiconductor program has been successfully finished within the 18-24-month timeline set out for it. The upcoming Phase 2.0, set to roll out in the next three-four months, will be focused on expanding the semiconductor ecosystem and include support for specialized materials. This new phase aims to further improve India's position in the global semiconductor market by broadening its focus beyond just manufacturing units.
UP government's efforts to attract semiconductor units
The UP government has introduced the Uttar Pradesh Semiconductor Policy 2024, which includes various incentives to attract semiconductor units. The Yamuna Expressway Industrial Development Authority's sector 10, is being considered as a potential location for these manufacturing units.
