The government of Uttar Pradesh has received proposals for projects totalling around Rs 40,038 crore under its new policy to incentivise semiconductor manufacturing and attract global investments in the state, its investment promotion agency Invest UP said in a statement.

Hiranandani group’s Tarq Semiconductor is expected to invest Rs 28,440 crore while Kaynes Technologies subsidiary Kaynes Semicon is set to invest Rs 4,248 crore. Aditech Semiconductor has proposed an investment of Rs 3,751 crore and Vamasundari Investment Delhi has planned to invest Rs 3,599 crore, the statement noted.

The projects are expected to create over 32,000 jobs in the state, it said.

“The Uttar Pradesh semiconductor policy is poised to revolutionize the industrial landscape of the state, making it a pivotal player in the global semiconductor market,” Invest UP said, adding that the policy not only aligns with national objectives but also positions the state as a competitive and attractive destination for semiconductor investments.

The ‘strategic move’ is expected to attract further investments and pave the way for UP to emerge as a leading industrial hub in the country, it said.

UP follows states like Gujarat, Karnataka and Tamil Nadu, which have been vying to attract chip manufacturers to their turf, to have a dedicated semiconductor policy.

The policy provides for an additional capital subsidy of 50 per cent on the capital subsidy approved by the union government under the India Semiconductor Mission, along with a five per cent per annum interest subsidy with investment up to Rs 200 crores, the statement said.It covers aspects including compound semiconductors, silicon photonics devices and integrated circuits in addition to manufacturing of components like ATMP (Assembly, Testing, Marking, and Packaging), OSOT (Outsourced Semiconductor Assembly and Test), ASICs (Application-Specific Integrated Circuits), MEMS (Micro-Electro-Mechanical Systems), and sensors.

“The semiconductor policy is a testament to our dedication to creating a conducive environment for technological innovation and industrial growth in Uttar Pradesh. We are focused on facilitating seamless investment processes and ensuring timely approvals for projects,” said UP chief minister Yogi Adityanath.

By fostering a robust semiconductor ecosystem, the state aims to leverage its strategic advantages to boost economic development and technological advancement, the statement said.

The state government is working to ensure adequate land and infrastructure for these projects and coordinating with the central government and relevant stakeholders to expedite implementation of the policy, it added.

Sunil Kumar Sharma, minister for information technology and electronics, government of UP, said that the state is attempting to create an ecosystem to develop IT hubs and that semiconductors, which are found in almost every instrument of day-to-day life, are the spine of any economy.