Uttar Pradesh approves ₹85 billion incentive for two semiconductor projects by Tarq Semiconductors and Vama Sundari near Noida International Airport.
UP Sanctions Major Incentive for Semiconductor Development
The Uttar Pradesh government has approved a package worth ₹85 billion to support two major semiconductor manufacturing projects near Noida International Airport, along the Yamuna Expressway. These initiatives align with the state’s Semiconductor Policy 2024 and await final clearance from the Central government.
The projects, spearheaded by Tarq Semiconductors, a subsidiary of the Hiranandani Group, and Vama Sundari Investments, a joint venture between HCL Group and Foxconn Hon Hai Technology India Megadevelopment, aim to boost India’s semiconductor industry. Together, they will involve a cumulative investment of ₹321.46 billion.
Details of the Semiconductor Projects
Tarq Semiconductors
Tarq Semiconductors plans to invest ₹284.40 billion to establish a state-of-the-art facility spread across 125 acres in Sector 28 of the Yamuna Expressway Industrial Development Authority (YEIDA) region. This facility will specialize in the production of compound semiconductors, including gallium nitride, silicon carbide, and gallium arsenide, as well as silicon photonics devices, integrated circuits, and optoelectronic components.
The project is expected to create approximately 11,000 direct and indirect job opportunities, driving economic growth and enhancing technological innovation in the region.
Vama Sundari Investments
Vama Sundari Investments will invest ₹37.06 billion to develop its 50-acre unit in Sector 10. This facility will generate around 3,780 direct and indirect jobs, significantly contributing to the region’s employment landscape. The land allocation for this project received in-principle approval from YEIDA in May.
Breakdown of Government Incentives
Tarq Semiconductors
- Capital Subsidy: ₹70.37 billion
- Land Cost Rebate: ₹320.9 crore (75% rebate)
- Stamp Duty and Registration Fee Exemptions: ₹299 million
Vama Sundari Investments
- Capital Subsidy: ₹9.193 billion
- Land Cost Rebate: ₹1.24 billion
- Stamp Duty and Registration Fee Exemptions: ₹11 million
Both companies will benefit from a 10-year exemption on electricity duty, access to dual power grids, and subsidies for water and electricity usage. Additionally, the state government will fund workforce upskilling programs and approve subsidies for innovation and employee welfare initiatives.
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