Noida: UP govt last month approved incentives amounting to over Rs 8,500 crore for two major semiconductor manufacturing projects that are planned to come up near Noida International Airport along the Yamuna Expressway. The incentives, part of UP’s Semiconductor Policy 2024, must be approved by the central govt.
Together, Tarq Semiconductors, part of the Hiranandani Group, and HCL subsidiary Vama Sundari Investments will invest Rs 32,146 crore to establish manufacturing facilities in the YEIDA region. A chunk of the investment – Rs 28,440 crore – will come from Tarq Semiconductors, which is planning to set up a unit on 125 acres of land in Sector 28. The facility will manufacture compound semiconductors: gallium nitride, silicon carbide, gallium arsenide. As along with silicon photonics devices, integrated circuits and optoelectronic components. It is expected to generate 11,000 jobs – direct and indirect.
The second project by Vama Sundari Investments, a joint venture of HCL Group and Foxconn Hon Hai Technology India Megadevelopment, will invest Rs 3,706 crore to establish its unit in Sector 10.
This facility is expected to create 3,780 direct and indirect jobs. The 50-acre project received in-principle land allotment approval from YEIDA this May. To support the two facilities, UP govt last month issued LOC, outlining its incentives.
,Tarq will get a c subsidy of Rs 7,037.50 crore. In addition, the company will receive a 75% rebate on land costs, valued at Rs 320.9 crore, and full exemptions on stamp duty and registration fees, amounting to Rs 29.9 crore. Similarly, Vama Sundari Investments will get a capital subsidy of Rs 919.3 crore along with land rebate of Rs 124.4 crore and Rs 1.1 crore exemption on stamp duty and registration fees. There is a 10-year exemption on electricity duty, dual power grid support, and subsidies for water and power consumption.
The state will also provide funding for upskilling. Subsidies for innovation and employee welfare have been approved. A non-disturbance clause will protect their lease agreements. Once the companies complete their investments, they will receive a YEIDA certificate. After they make full lease payments, their lease deeds can only be cancelled after approval from YEIDA’s board of directors in case of violations.