Noida: The city can hope to see itself as one of India’s largest semiconductor manufacturing hubs after two major investment proposals received approval this week from the state cabinet.
One is a Rs 27,000-crore investment proposed by Tarq Semiconductors, which is a joint venture of the Hiranandani Group, the other a Rs 3,700-crore project by Vama Sundari Investments (HCL Group).
The Tarq facility will be a ‘fab’, which is short for fabricator – one that manufactures integrated circuits or microchips, which power an array of devices from smartphone to car computers, laptops and TVs.
Both units will come up off Yamuna Expressway in the vicinity of the upcoming Noida International Airport, which is the focal point around which UP is planning its mega business projects. The deal for the Tarq facility was inked at the state’s Global Investor Summit.
Arun Vir Singh, CEO of Yamuna Expressway Industrial Development Authority (YEIDA), told TOI on Tuesday, “The Tarq facility will be built on 125 acres in Sector 28, becoming a flagship project in Uttar Pradesh’s efforts to create a robust semiconductor supply chain. The chips produced here will be vital for everyday household electronics.”
The Hiranandani Group, according to Singh, has committed to completing the facility within two years, with chip production expected to commence shortly thereafter.
The state govt will support Tarq’s investment through capital subsidies and additional incentives from the Centre. The facility will cover 114 acres for industrial use, with an additional 11 acres designated as green space. Under the state’s semiconductor policy, Tarq must commit to maintaining continuous production for three years from the start date.
Tarq had applied under the central govt’s India Semiconductor Mission (ISM) last April. In Jan, the YEIDA board approved the proposal to allocate 125 acres in Sector 28 to the Hiranandani Group for the establishment of a semiconductor park. With the cabinet’s approval now in place, the next step is clearance from the Centre.
Vama Sundari Investments has proposed to establish a ‘fab’ unit near Jewar that will produce 2.4 lakh small panel driver ICs and display driver integrated circuits (DDIC) annually. The HCL Group’s project is a joint venture with Foxconn Hon Hai Technology India Mega Development Pvt Ltd, with Vama Sundari holding a 60% stake and Foxconn 40%. The facility will span 50 acres in Sector 10, with land allotment already approved by YEIDA through a letter of intent issued this May.
Last month, YEIDA also agreed to allocate 50 acres to Bharat Semi Systems Pvt Ltd — a startup — for a semiconductor manufacturing unit in Sector 10. This project is part of an agreement between India and the US to produce chips essential for national security. According to the Indo-US joint factsheet following Prime Minister Narendra Modi’s meeting with US President Joe Biden, Bharat Semi and 3rdiTech of India will establish a strategic technology partnership with the US Space Force for the ‘fab’ plant, which will manufacture infrared, gallium nitride, and silicon carbide semiconductors.
Officials said the company plans to invest Rs 2,350 crore, with an initial investment of Rs 800 crore in the first phase, contingent on receiving necessary approvals within the next 12 months.
Besides, Kaynes Semicon Private Limited, a subsidiary of Kaynes Technologies India Limited (KTIL), has proposed an OSAT (outsourced semiconductor assembly and test) facility on 50 acres in Sector 10 to manufacture compound semiconductors, silicon photonics, sensor fabs, and discrete semiconductors. Kaynes has partnered with Globetronics Technology Bhd (Malaysia), Mixx Technologies (US) and Aptos Technology (TMC Group) for technology transfer.