Introduction
The Uttar Pradesh government has approved financial incentives worth ₹8,500 crore for two semiconductor manufacturing projects, signaling a major step towards strengthening India’s semiconductor ecosystem.
These projects, proposed by Tarq Semiconductors Pvt Ltd and Vama Sundari Investments (Delhi) Pvt Ltd, are expected to attract a total investment of ₹32,146 crore, creating a wave of economic growth and job opportunities near Noida International Airport.
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Overview:
- State Approval: Uttar Pradesh Incentives grants ₹8,500 crore under its Semiconductor projects Policy-2024.
- Massive Investments: Combined investment of ₹32,146 crore by two firms.
- Job Creation: Over 15,000 direct and indirect employment opportunities.
- Strategic Focus: Facilities to be set up in Greater Noida’s Sector 28 and Sector 10.
- Awaiting Central Nod: Both projects await central government approval.
Background:
The Indian government has prioritized semiconductor manufacturing under the Semiconductor Mission, aiming to reduce dependency on imports and establish India as a global hub for electronics manufacturing.
With Uttar Pradesh emerging as a focal point, the Semiconductor Policy-2024 offers incentives such as subsidies, single-window clearances, and infrastructure support. The state government’s latest approvals are a testament to this commitment
Details of the Projects
1. Tarq Semiconductors Pvt Ltd (Hiranandani Group)
- Investment: ₹28,440 crore
- Location: Sector 28, Greater Noida
- Focus Areas:
- Compound semiconductors
- Silicon photonics devices
- Integrated circuits
- Optoelectronic components
- Job Creation: 1,000 direct jobs and 10,000 indirect jobs
2. Vama Sundari Investments (Delhi) Pvt Ltd
- Investment: ₹3,706 crore
- Location: Sector 10, Greater Noida
- Focus Areas:
- Display driver integrated circuits (DDIC)
- Semiconductor assembly
- Job Creation: 3,780 direct and indirect jobs
“These projects will solidify Uttar Pradesh’s position as a critical hub in India’s semiconductor ecosystem,” said Arun Vir Singh, CEO of the Yamuna Expressway Industrial Development Authority (YEIDA).
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Why Greater Noida?
Greater Noida’s strategic location near the upcoming Noida International Airport and robust industrial infrastructure makes it an ideal destination for high-tech industries.
The Yamuna Expressway region, with its integrated township models, offers seamless connectivity and conducive facilities for large-scale manufacturing.
Additionally, the Uttar Pradesh government has rolled out targeted policies to attract investments in high-tech sectors, offering land subsidies, tax benefits, and dedicated industrial zones for semiconductor manufacturing.
Economic and Employment Impact
The semiconductor projects are expected to transform the region’s economy.
- Direct and Indirect Jobs:
- Tarq Semiconductors will generate over 11,000 jobs.
- Vama Sundari Investments aims to create nearly 4,000 jobs.
- Catalyst for Ancillary Industries:
- Growth in logistics, real estate, and service industries.
- Boost for MSMEs supplying raw materials and components.
- Skill Development:
- Specialized training programs for local workers.
- Collaboration with universities and technical institutes.
Challenges and Next Steps
While the projects have state-level approval, they await the central government’s nod. Additionally, the semiconductor industry requires massive capital investment, skilled labor, and a resilient supply chain.
Experts suggest fast-tracking policy alignments at the national level to ensure India competes with global semiconductor giants like Taiwan and South Korea.
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Future Outlook
The semiconductor industry’s global market size is projected to reach $1 trillion by 2030. India’s entry into this competitive domain, powered by initiatives like the Semiconductor Mission and state-level incentives, positions the country as a key player.
For Uttar Pradesh, these projects signify more than just industrial growth. They are part of a larger vision to transform the state into electronics manufacturing powerhouse, driving innovation and economic prosperity.
Conclusion
The approval of these two projects marks a significant milestone for India’s semiconductor journey. With the combined efforts of the state and central governments, the Yamuna Expressway region is poised to emerge as a hub of technological excellence, contributing to India’s vision of self-reliance in critical technologies.
