With two landmark projects—one by the Tarc Investment Group and the other a joint venture between HCL and Foxconn—Uttar Pradesh is on its path to emerging as a key player in India’s semiconductor mission.
Two mega projects spark a semiconductor surge in UP
The ₹3,706 crore joint venture between HCL and Foxconn was recently approved by the Indian government to set up the country’s sixth semiconductor facility—its first in Uttar Pradesh. The plant, located near Jewar airport, will focus on producing display driver chips and is slated to begin production in 2027.
On the other hand, Tarq Semiconductors, a venture by the Hiranandani Group, has proposed an investment of ₹27,000 crore to establish a state-of-the-art semiconductor fabrication unit in Sector 28, Noida, near the upcoming Jewar International Airport. This facility is designed to produce integrated circuits (ICs) and microchips essential for a wide array of electronic devices, including smartphones, computers, and automobiles.
Uttar Pradesh has rapidly positioned itself as a major hub for the high-tech industry, attracting significant investments just 17 months after launching its dedicated Semiconductor Policy.
A rapid rise backed by policy and infrastructure
With robust support from the state government and a policy framework designed to draw global investors, Uttar Pradesh is gaining recognition as a rising star in India’s semiconductor ecosystem. Backed by a well-established electronics manufacturing base in the Noida-Greater Noida-Yamuna Expressway corridor, the state already contributes 55% of India’s mobile phone production and 60% of its mobile components, laying a strong foundation for the semiconductor sector.
Chief Secretary of Uttar Pradesh, Manoj Kumar Singh, emphasized the state’s ambitions in a recent statement. “Uttar Pradesh is not just participating in creating a semiconductor hub — we aim to lead it. Our policies are among the best in the country, offering up to 50% capital subsidy, 75% discount on land, and 100% exemption on stamp duty, which gives us a clear edge over other states. State policy aligns seamlessly with Chief Minister Yogi Adityanath’s vision of making Uttar Pradesh a cornerstone of Digital India and Aatmanirbhar Bharat,” he said.
UP’s Semiconductor Policy and incentives to lead in semiconductor landscape
The state government’s Semiconductor Policy-2024, officially notified on February 12, 2024, aims to establish a comprehensive ecosystem not only for chip manufacturing but also for chip design. The policy includes a host of incentives—from capital assistance and interest subsidies to waivers on stamp and electricity duties—aimed at drawing both Indian and global players.
Recognizing India’s role in the global semiconductor design landscape, Uttar Pradesh is now focused on encouraging domestic design firms to develop chips tailored for Indian manufacturers. This move is seen as a step toward greater technological self-reliance and innovation leadership.
As investment momentum gathers pace, Uttar Pradesh is poised to evolve from a manufacturing hub into a full-fledged semiconductor ecosystem—creating thousands of high-skilled jobs and contributing to both state and national growth in this critical sector.