Proposals for projects worth around Rs 40,038 crore have been submitted to the Uttar Pradesh government as part of their new policy to encourage semiconductor manufacture and draw in foreign investment.

Proposals for projects worth around Rs 40,038 crore have been submitted to the Uttar Pradesh government as part of their new policy to encourage semiconductor manufacture and draw in foreign investment.

More than 32,000 employment are anticipated to be created in the state by the projects.

“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 anticipated to draw in more capital and open the door for UP to become the nation's preeminent industrial region.

Following in the footsteps of states like Gujarat, Karnataka, and Tamil Nadu, UP has enacted a dedicated semiconductor policy that offers an additional 50 percent capital subsidy on top of the capital subsidy approved by the union government under the India Semiconductor Mission.

Additionally, the policy provides a five percent annual interest subsidy with an investment up to Rs 200 crores.

The policy covers a variety of topics, including the manufacturing of components such as 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 state hopes to use its strategic advantages to further technical innovation and economic development by cultivating a strong semiconductor ecosystem.

In order to expedite the policy's implementation, the state administration is coordinating with the federal government and pertinent partners to secure sufficient land and infrastructure for these projects.

The UP government's minister for information technology and electronics, Sunil Kumar Sharma, stated that semiconductors, which are included in practically every device used on a daily basis, are the backbone of any economy and that the state is working to establish an ecosystem to support the development of IT centers.