In a significant development, Uttar Pradesh Chief Minister Yogi Adityanath has officially signed the long-awaited Semiconductor Policy 2024, making Uttar Pradesh the fourth Indian state, following Gujarat, Odisha, and Tamil Nadu, to establish its dedicated semiconductor policy. The policy, spanning a five-year term, aims to attract investments and propel the state into a prominent hub for the semiconductor industry.
According to statements from the state cabinet, the policy offers a range of incentives to investors, positioning Uttar Pradesh as an attractive destination for semiconductor manufacturing. Higher Education Minister Yogendra Upadhyay emphasized during a media conference that the semiconductor policy is designed to provide capital, non-financial, and financial incentives to all stakeholders in the semiconductor manufacturing ecosystem.
Under the policy, the state government plans to subsidize 50 per cent of the capital subsidy provided by the central government. Additionally, units investing up to Rs 200 crore will benefit from interest subsidies up to a maximum of Rs 1 crore. The state will also provide a 75 per cent discount on the first 200 acres of land and a 30 per cent discount on additional land. Furthermore, there will be a 100 per cent exemption on registration and stamp duty for land acquisitions.
The official press release from the Uttar Pradesh government highlights the anticipated surge in demand for semiconductors, projecting a market exceeding USD 100 billion by 2025. Acknowledging the country’s current dependency on semiconductor imports, the government aims to leverage the policy to lead the charge towards becoming a trillion-dollar economy.
The IT and Electronics Department will serve as the nodal agency for policy implementation, with the establishment of a dedicated policy implementation unit chaired by the additional chief secretary/principal secretary of the IT and Electronics Department. This move signifies Uttar Pradesh’s commitment to fostering technological growth and self-reliance in the semiconductor sector.
