UP readies to become chip hub

STATE GOVERNMENT ROLLS OUT INCENTIVES TO ATTRACT ₹3,000 CR SEMICONDUCTOR INVESTMENTS

- SUDHIR CHOWDHARY

UTTAR PRADESH HAS identified semiconductors as a cornerstone of its future industrial growth and made the sector a clear strategic priority.

The state has rolled out focused policies to strengthen electronics, system design and manufacturing, with the aim of building the entire value chain within the state—from design and fabrication to testing. Working in sync with the Centre’s India Semiconductor Mission, the state is focusing on land availability, infrastructure, fast-track approvals and access to skilled talent. Existing electronics manufacturing clusters in Noida and Greater Noida give the state a natural edge in attracting semiconductor investments.

Earlier this month, the state cabinet approved a set of targeted incentives for semiconductor companies willing to commit capital investments of ₹3,000 crore or more in the state. The policy framework, aimed at bolstering manufacturing and high-technology production, includes interest subsidies, employee cost support, 10-year GST exemptions, power tariff reliefs, and workforce-linked incentives—all designed to reduce operating costs and improve long-term project viability.