The Uttar Pradesh government has approved a financial incentive package worth over Rs 8,500 crore for two semiconductor manufacturing projects under its Semiconductor Policy-2024. The projects proposed by Tarq Semiconductors and Vama Sundari Investments (Delhi) are expected to attract a combined investment of Rs 32,146 crore.
Tarq Semiconductors, a part of the Hiranandani Group, plans to invest Rs 28,440 crore in Sector-28, near the Jewar airport to produce compound semiconductors, silicon photonics devices, integrated circuits, and optoelectronic components. Meanwhile, Vama Sundari Investments has earmarked Rs 3,706 crore to establish a facility in Sector 10, focused on display driver integrated circuits (DDIC) and semiconductor assembly. However, both projects await final approval from the Central government to commence operations, according to officials.
“The UP government has issued Letters of Comfort to both companies, detailing the incentives under the Semiconductor Policy. The incentives, including capital subsidies, land rebates, and tax exemptions, will only be disbursed after the projects receive central government approval. Tarq Semiconductors has been awarded a capital subsidy of ?7,037 crore, along with a 75% rebate on land costs valued at Rs321 crore and 100% exemptions on stamp duty and registration fees amounting to ?30 crore. Vama Sundari Investments has received a capital subsidy of Rs 919.31 crore, a land rebate of Rs124.37 crore, and stamp duty exemptions worth Rs 1.16 crore,” CEO of the Yamuna Expressway Industrial Development Authority,Arun Vir Singh said.
The additional benefits for both companies include a 10-year electricity duty exemption, dual power grid support, and subsidies for water and power consumption. A special allocation includes annual internship support for 500 engineering students and a Rs one crore talent attraction grant per unit. Tarq Semiconductors aims to generate 1,000 direct and 10,000 indirect employment opportunities, while Vama Sundari Investments will aid in the creation of 3,780 direct and indirect jobs.
Their proximity to the Noida international airport is seen as a strategic advantage to integrate the state into India’s burgeoning semiconductor industry.