The Uttar Pradesh Cabinet has approved a set of incentives to attract semiconductor companies willing to invest Rs 3,000 crore or more in the state.

The move is aimed at boosting high-end manufacturing and creating large-scale employment. The state's semiconductor policy, introduced in January 2024, outlines case-by-case incentives, including interest subsidies, employee cost reimbursements, GST exemptions for 10 years, and a power tariff subsidy of up to Rs two per unit for a decade. Additional benefits include 100 percent reimbursement of EPF contributions for local professionals, capped at Rs 2,000 per month, and concessions in water charges.

Finance Minister Suresh Kumar Khanna noted that the goal is to attract major global players and position Uttar Pradesh as a key destination for semiconductor manufacturing. The state has already seen significant interest, with 21 companies making investments this financial year, set to generate both direct and indirect employment opportunities.