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Uttar Pradesh is rolling out substantial incentives to attract semiconductor investments of INR 3,000 crore and above.
The state cabinet, led by Chief Minister Yogi Adityanath, approved 13 out of 14 proposals aimed at boosting large-scale semiconductor manufacturing.
New Incentive Package
Finance Minister Suresh Kumar Khanna announced a suite of benefits, including interest subsidies, reimbursement for appliance costs, and 10-year relief from net state Goods and Services Tax (SGST). Professionals native to Uttar Pradesh will also receive 100% EPF reimbursement, capped at INR 2,000 per month. Subsidies on water charges and electricity bills, up to INR 2 per unit for a decade, are also part of the package. These incentives will be assessed and granted on a case-by-case basis.
Boosting UP's Role
These measures are designed to establish Uttar Pradesh as the nation's semiconductor and electronics manufacturing hub. The state's strategy aligns with its semiconductor policy, launched in January 2024. Major players like Dixon, Samsung, and OPPO already have manufacturing facilities in the region.
National Semiconductor Drive
The move comes as India intensifies its push in the semiconductor sector. Earlier this year, the Union cabinet greenlit a joint venture between HCL and Foxconn to establish a semiconductor unit in Noida, involving an INR 3,700 crore investment. Additionally, INR 417 crore was approved for an electronics manufacturing cluster in Gautam Buddha Nagar, Uttar Pradesh, projected to draw INR 2,500 crore in investment and create over 15,000 jobs. The state government previously secured investment commitments totaling INR 40,038 crore under its semiconductor policy.