The Uttar Pradesh government is making significant strides in the semiconductor sector with the launch of the state’s first semiconductor park near Noida International Airport, located in Jewar, Greater Noida. This ambitious project, spearheaded by the Yamuna Expressway Industrial Development Authority (YEIDA), aims to transform the region into a hub for global chip manufacturing, attracting both domestic and international companies.
Spread across two key locations, the semiconductor park will include two clusters: one covering 200 acres in Sector 10 and another spanning 125 acres in Sector 28. To support these clusters, infrastructure developments such as an 8 MLD water treatment plant, a 60 MLD sewage treatment facility, and multiple power substations are already planned. The availability of consistent water and power, combined with the proximity to Noida International Airport, positions the park as an attractive destination for investors.
The Uttar Pradesh government’s semiconductor policy, the first of its kind in India, provides a range of incentives designed to encourage investment. These include a 50% additional capital subsidy on top of the central government’s support, a 75% land rebate for investors in compound semiconductors, sensors, ATMP, and OSAT, as well as a 100% exemption on electricity duty for 10 years. Other benefits include a 50% exemption on inter-state power purchase and transmission costs for 25 years, and a 100% waiver on stamp duty and registration fees. Investors will also enjoy an annual interest subsidy of 5%, with a cap of Rs 7 crores.
In addition to its strategic location, the region boasts superior connectivity options, with the upcoming Rapid Rail Transit System (RRTS) and a planned high-speed rail line between Delhi and Varanasi further enhancing access. The recently completed interchange on the Delhi-Mumbai Expressway near the Yamuna Expressway adds to its logistical advantages, making the park a prime location for semiconductor manufacturing.
This initiative is expected to generate substantial employment opportunities for local youth while positioning Uttar Pradesh as a critical player in the global semiconductor supply chain. By investing heavily in infrastructure and offering substantial financial incentives, the government is laying the groundwork for the state to become a leader in the rapidly expanding semiconductor industry.
Frequently Asked Questions (FAQ)
1. What is the Uttar Pradesh Semiconductor Park project?
The Uttar Pradesh Semiconductor Park is a major initiative aimed at establishing a hub for semiconductor manufacturing in the state. Located near the Noida International Airport in Jewar, Greater Noida, the park will feature two dedicated clusters for semiconductor companies, spread across 325 acres.
2. Where will the semiconductor park be located?
The park will be developed across two clusters: one in Sector 10 (200 acres) and another in Sector 28 (125 acres) near the Noida International Airport in Jewar, Greater Noida.
3. What incentives does the Uttar Pradesh Semiconductor Policy offer?
The policy provides substantial incentives, including:
50% additional capital subsidy over the Central Government’s subsidy.
75% land rebate for investors in compound semiconductors, silicon photonics, sensors, ATMP, and OSAT.
100% exemption on electricity duty for 10 years.
50% exemption on inter-state power purchase, transmission, and wheeling charges for 25 years.
100% waiver on stamp duty and registration fees.
5% annual interest subsidy, with a cap of Rs 7 crores.
4. What infrastructure support is planned for the semiconductor park?
YEIDA will build significant infrastructure to support the park, including:
An 8 MLD water treatment plant.
A 60 MLD sewage treatment plant.
Multiple power substations (400/200/132 KV) for reliable electricity supply.
5. How will the semiconductor park be connected to transportation networks?
The park will benefit from excellent connectivity:
Only 4 km from Noida International Airport.
Access to the upcoming Rapid Rail Transit System (RRTS).
Future high-speed rail line between Delhi and Varanasi, with a station at Noida Airport.
Enhanced road connectivity via the Delhi-Mumbai Expressway interchange near the Yamuna Expressway.
6. What types of companies are expected to invest in the semiconductor park?
The park aims to attract a wide range of semiconductor-related companies, including those involved in compound semiconductors, silicon photonics, sensors, ATMP (Assembly, Testing, Marking, and Packaging), and OSAT (Outsourced Semiconductor Assembly and Test).
7. What are the employment prospects in the semiconductor park?
The development of the semiconductor park is expected to create significant job opportunities, particularly for the youth in Uttar Pradesh. It will provide employment across various sectors, including engineering, manufacturing, and logistics.
8. How is the UP government supporting power and energy needs for the park?
The government will offer a dual grid network to ensure an uninterrupted power supply. Additionally, investors will receive a 100% exemption on electricity duty for 10 years and a 50% exemption on inter-state power purchases and transmission costs for 25 years.
9. How does the semiconductor park align with India’s broader semiconductor policy?
The Uttar Pradesh Semiconductor Policy complements India’s national semiconductor policy by providing additional financial incentives and infrastructural support to help boost the country’s semiconductor manufacturing capabilities and reduce reliance on imports.
10. When is the project expected to be completed?
Although an exact timeline has not been announced, the project is progressing rapidly with land already allocated and infrastructure planning underway. Key connectivity projects, like the Noida International Airport and the RRTS, are also in advanced stages of development.
11. Who can benefit from the land rebates and other subsidies offered?
Companies involved in the semiconductor manufacturing ecosystem, particularly those working on compound semiconductors, silicon photonics, sensors, ATMP, and OSAT, are eligible for a 75% land rebate and other financial incentives as per the UP-Semiconductor Policy.
12. What is the strategic significance of this park for Uttar Pradesh and India?
This park positions Uttar Pradesh as a leading player in India’s growing semiconductor industry. It will help reduce dependency on foreign chip imports, drive technological innovation, and boost economic development through job creation and global investment.
13. How can interested investors apply to set up operations in the semiconductor park?
Investors can reach out to the Yamuna Expressway Industrial Development Authority (YEIDA) or the Uttar Pradesh government’s investment promotion departments to apply for land allocation and explore available subsidies under the Semiconductor Policy.
14. What are the benefits of the park’s proximity to Noida International Airport?
The park’s location just 4 km from Noida International Airport offers excellent logistical advantages, with easy access to cargo facilities for semiconductor companies. This proximity ensures swift transportation of goods and enhanced connectivity for investors and international buyers.
