Aiming to become a semiconductor hub, the Uttar Pradesh cabinet has okayed two big semiconductor projects of Rs 32,000 crore.
The two plants will be set up near the under-construction Jewar International Airport in Greater Noida.
Recently, the Yogi Adityanath cabinet approved the subsidy payment of over Rs 9,000 crore for the two projects, which are estimated to create 15,000 jobs.
Tarq Semiconductors Private Limited, part of the Hiranandani Group, will invest nearly Rs 28,440 crore in a semiconductor fabrication plant in the Yamuna Expressway Industrial Development Authority (YEIDA) enclave.
The Centre and UP will provide 25 percent capital subsidy each on the total cost. The state will incur about Rs 7,037 crore as subsidy for the project.
Another project will be set up by Vama Sundari Investments (Delhi) Private Limited with an investment of Rs 3,706 crore. The state will provide capital subsidy of 60 percent, which amounts to Rs 2,223 crore.
Vama Sundari is promoted by HCL founder Shiv Nadar. The plant, to be set up in collaboration with Foxconn, will span 50 acres and provide jobs to 4,000 people.
The domestic semiconductor demand is estimated to leapfrog 10 times from $10 billion in 2020 to $100 billion in 2025.
On January 19, 2024, the Yogi Adityanath government had announced the UP Semiconductor Policy 2024, thus joining the league of Gujarat, Odisha and Tamil Nadu for having a dedicated policy.
Semiconductors are used in electronic devices viz diodes, transistors and integrated circuits, which run consumer electronics such as smartphones, modern cars, TV, computers etc.
The global semiconductor market is likely to grow at a compounded rate of 12 percent from $574 billion in 2022 to $1.38 trillion by 2029. The growing market of electronic devices is fueling the growth of semiconductors.