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The Uttar Pradesh government has approved over ?8,500 crore in incentives for two major semiconductor manufacturing projects planned near Noida International Airport along the Yamuna Expressway, as part of its Semiconductor Policy 2024. These incentives are pending approval from the Central government.
Tarq Semiconductors, a subsidiary of the Hiranandani Group, and HCL subsidiary Vama Sundari Investments will jointly invest ?32,146 crore to establish manufacturing facilities in the YEIDA region. Of this, ?28,440 crore will come from Tarq Semiconductors, which plans to set up a unit on 125 acres of land in Sector 28. The facility will focus on manufacturing compound semiconductors like gallium nitride, silicon carbide, and gallium arsenide, along with integrated circuits, optoelectronic components, and silicon photonics devices. This project is expected to generate 11,000 direct and indirect jobs.
The second project, led by Vama Sundari Investments, a joint venture between HCL Group and Foxconn Hon Hai Technology India Megadevelopment, will invest ?3,706 crore to set up a unit in Sector 10, covering 50 acres of land. This facility is expected to create 3,780 direct and indirect jobs. The project received in-principle land allotment approval from YEIDA in May 2024.
To support these initiatives, the Uttar Pradesh government issued a letter of commitment outlining substantial incentives. Tarq Semiconductors will receive a capital subsidy of ?7,037.50 crore, a 75% rebate on land costs (?320.9 crore), and full exemptions on stamp duty and registration fees (?29.9 crore). Vama Sundari Investments will benefit from a capital subsidy of ?919.3 crore, a land rebate of ?124.4 crore, and stamp duty exemptions of ?1.1 crore.
Both projects will also receive exemptions on electricity duties for 10 years, dual power grid support, and subsidies for water and power consumption. The government has also committed to funding workforce upskilling, providing subsidies for innovation, and supporting employee welfare. Additionally, a non-disturbance clause will protect the companies lease agreements, and YEIDA’s board will oversee any potential lease cancellations. Once completed, the projects are expected to contribute significantly to the state’s semiconductor and high-tech manufacturing sectors. |
