Uttar Pradesh is set to join Gujarat and Assam in hosting semiconductor units, Union Minister for Electronics and IT, Ashwini Vaishnaw, said at a press briefing at Semicon India 2024 event on September 11.
The state’s Chief Minister Yogi Adityanath also added that the state is prepared to offer a capital subsidy of up to 25 percent to companies establishing semiconductor fabs in Uttar Pradesh. This state subsidy, combined with the central government's 50 percent capex support, could provide semiconductor units in Uttar Pradesh with up to 75 percent in total capital subsidies.
The state will also offer land subsidies at lower rates and introduce support schemes for Fortune 500 companies and those bringing foreign direct investment (FDI).
Currently, India has approved five semiconductor projects, out of which construction has already begun on two of the approved semiconductor units, with work set to start on three more.
The new Phase 2.0 of the programme will build on the success of the first phase, which was completed on schedule. This next phase will focus on expanding the semiconductor ecosystem and include support for specialised materials.
“The first phase of our semiconductor programme has been successfully completed within the 18-24-month timeline we set for it,” Vaishnaw stated. “With Phase 2.0, we aim to broaden our focus to include specialised materials and further support the ecosystem.”
Construction has already commenced on two of the approved semiconductor units, with work about to start on three more, the minister added. Phase 2.0 is expected to roll out in the next three-four months, will introduce an expanded version of the programme, incorporating detailed consultations to determine the next steps for state support.
Vaishnaw also mentioned that several promising proposals are currently under review and will soon be presented to the Cabinet for approval. The government’s emphasis remains on creating a comprehensive semiconductor ecosystem, including specialised materials, to bolster India's position in the global semiconductor market.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
