UP approves $1 billion in incentives for 2 semiconductor units
The projects proposed by Tarq Semiconductors and Vama Sundari Investments are expected to attract a combined investment of USD 3.8 billion, but both await approval by the central government.
The government of north India’s Uttar Pradesh (UP) state has reportedly approved financial incentives worth over ₹85 billion (around USD 1 billion) for two semiconductor manufacturing projects under its Semiconductor Policy-2024.
The projects proposed by Tarq Semiconductors Pvt Ltd and Vama Sundari Investments (Delhi) Pvt Ltd are expected to attract a combined investment of ₹321 billion (USD 3.8 billion), the Hindustan Times reports.
Tarq Semiconductors, a part of the Hiranandani Group, plans to invest ₹284 billion to produce compound semiconductors, silicon photonics devices, integrated circuits and optoelectronic components. Vama Sundari Investments has earmarked ₹37 billion to establish a unit focused on display driver integrated circuits (DDIC) and semiconductor assembly, the report says.
“These facilities will position Uttar Pradesh as a key player in India’s semiconductor ecosystem,” said Arun Vir Singh, chief executive officer of the Yamuna Expressway Industrial Development Authority (Yeida).
Both projects need a final approval from the central government.
According to the report, both companies will receive benefits such as capital subsidies, land rebates, tax exemptions, electricity duty exemption, dual power grid support, and subsidies for water and power consumption.
The proposed units’ proximity to Uttar Pradesh’s Noida international airport is being seen as a strategic advantage for integrating the state into the country’s expanding semiconductor industry.
“We need final approval from the government of India, which is the last step in the process, and we will start work on the ground as soon as we receive it,” Darshan Hiranandani, CEO of the Hiranandani Group, said in the Hindustan Times report.
