UP approves proposal for semiconductor units near airport | Noida News – Times of India
Noida: UP cabinet has granted in-principle approval for the allotment of land to HCL and Kaynes Technology to establish semiconductor manufacturing units in YEIDA Sector 10, near the Noida International Airport.
Each company will be allocated 50 acres of land for this purpose. Together, these companies are expected to invest over Rs 8,000 crore in the project, which is anticipated to generate employment opportunities for more than 5,000 people.
The next step for this is to secure Central govt approval.Applications have been submitted to the Central govt for approval under its scheme to promote the semiconductor manufacturing sector.
Previously, YEIDA reserved 125 acres of land for Hiranandani Group’s Tarq Semiconductors in Sector 28 for a similar project.
Its application is also pending central approval.
Vama Sundari Investments (Delhi) Private Limited (VSIPL) is a major promoter company of the HCL Group, holding a 44.2% stake in HCL Technologies Limited (HCL Tech) — India’s third-largest IT/ITES company. In collaboration with Foxconn Hon Hai Technology India Mega Development Private Limited, VSIPL will establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in India.
In this joint venture, VSIPL will hold 60% equity, while Foxconn will hold 40%.
The facility will produce small panel driver ICs and display driver integrated circuits (DDIC), with an annual production capacity of 2.4 lakh units. This project is expected to create 3,780 direct and indirect jobs. VSIPL received a ‘letter of intent’ from YEIDA on May 24, 2024, for land allotment in Sector 10. The facility’s water requirement is projected at 2,000 MLD, featuring an 85% water recycling efficiency.
The total expenditure over the first five years, including capital and working capital, is estimated at Rs 3,706.1 crore. A technology transfer agreement between VSIPL and Foxconn is expected to be finalised by Sept 2024.
YEIDA CEO Arun Vir Singh stated that letters of comfort were issued to both companies in May 2024, followed by a meeting with company representatives and govt officials from the IT and electronics department on 4 July.
The UP cabinet subsequently granted approval last week. Recognising the significant opportunities in the semiconductor sector, both the Central and UP govts have introduced policies to support this industry.
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