Solutionbuggy Team
Dec 3, 2024
State Government Aims to Boost Semiconductor Manufacturing with Major Financial Support for Industry Projects
Summary
The Uttar Pradesh government recently approved over Rs 8,500 crore in financial incentives for two major semiconductor manufacturing projects near Noida International Airport along the Yamuna Expressway. These projects, part of the state's Semiconductor Policy 2024, are subject to central government approval. Tarq Semiconductors, backed by the Hiranandani Group, plans to invest Rs 28,440 crore to set up a facility on 125 acres in Sector 28, focusing on manufacturing compound semiconductors. This project is expected to create 11,000 jobs. Additionally, Vama Sundari Investments, a joint venture between HCL and Foxconn, will invest Rs 3,706 crore for a 50-acre facility in Sector 10, generating 3,780 jobs.
Overview
The Uttar Pradesh government has approved a substantial financial incentive package exceeding Rs 8,500 crore for two major semiconductor manufacturing projects under its Semiconductor Policy-2024. The total investment for these projects, led by Tarq Semiconductors and Vama Sundari Investments, is projected to reach Rs 32,146 crore.
Tarq Semiconductors, a part of the Hiranandani Group, is investing Rs 28,440 crore in a facility located in Sector-28 near the upcoming Jewar airport. The plant will focus on manufacturing integrated circuits, compound semiconductors, silicon photonics devices, and optoelectronic components. On the other hand, Vama Sundari Investments, a joint venture between HCL and Foxconn, has committed Rs 3,706 crore to establish a semiconductor manufacturing unit in Sector-10, specializing in semiconductor manufacturing and display driver integrated circuits (DDIC).
These projects are poised to significantly boost the semiconductor industry in India, but both require final approval from the central government before they can commence operations. Once approved, the Uttar Pradesh government will disburse the incentives, which include capital subsidies, tax exemptions, land cost refunds, and other benefits.
For Tarq Semiconductors, the incentive package includes a capital subsidy of Rs 7,037 crore, a 75% land cost refund amounting to Rs 321 crore, and full exemptions from stamp duty and registration fees worth Rs 30 crore. Vama Sundari Investments will receive a capital subsidy of Rs 919.31 crore, land cost refunds of Rs 124.37 crore, and exemptions from stamp duty amounting to Rs 1.16 crore.
Further, both companies will benefit from power and water tariff incentives, a decade-long exemption from energy charges, and support for two power grids. The projects will also create significant employment opportunities, with Tarq Semiconductors expected to generate 11,000 direct and indirect jobs, while Vama Sundari Investments will create 3,780 jobs. Additionally, both companies will receive support for talent acquisition, with provisions for internships for 500 engineering students annually.
Once the projects are operational, they are expected to play a pivotal role in strengthening India's semiconductor ecosystem, attracting foreign investment, and contributing to the country's technological growth.
Conclusion
In conclusion, the Uttar Pradesh government's approval of over Rs 8,500 crore in financial incentives for Tarq Semiconductors and Vama Sundari Investments marks a significant step towards enhancing India's semiconductor manufacturing capabilities. With a total investment of Rs 32,146 crore, these projects are set to not only boost the state’s economy but also create thousands of jobs, drive technological innovation, and strengthen India's position in the global semiconductor market. The incentives provided, including subsidies, tax exemptions, and infrastructure support, will help these companies establish state-of-the-art facilities and contribute to the growth of the broader electronics and manufacturing sectors. Once the final approval from the central government is secured, these projects are poised to play a transformative role in the region’s industrial landscape, further positioning Uttar Pradesh as a key hub for advanced manufacturing in India.