Uttar Pradesh Chief Minister Yogi Adityanath, during a high-level meeting on Wednesday, unveiled plans to formulate a comprehensive semiconductor policy to make the state a hub in semiconductor manufacturing.
Emphasising the pivotal role of semiconductors in today’s technology-driven landscape, Adityanath underscored the global semiconductor industry’s staggering revenues exceeding $950 billion in 2022, signalling vast potential and opportunities in the sector.
During the meeting, he said semiconductor manufacturing is a significant sector with immense possibilities, and UP must seize this opportunity, citing the substantial investments of over $500 billion made by semiconductor chip giants in establishing fabrication units.
The chief minister also lauded the Centre’s proactive move to allocate a $10 billion incentive outlay to attract investments in semiconductor and display ecosystems. Adityanath highlighted the imperative to create a conducive environment for a holistic semiconductor ecosystem, encompassing fabrication units, mixed semiconductors, outsourced semiconductors, assembly and test units, testing, and packaging units.
Furthermore, he stressed the need for UP’s distinctive semiconductor policy, aligning with the Union government’s incentives, while extending additional capital infusion provisions and exemptions in stamp duty, electricity duty, SGST reimbursement, dual power grid network transmission, and wheeling charges. The policy is expected to prioritise skill development, patents, water supply, power banking, and research and development assistance.
“We have also received encouraging proposals in this sector during the Global Investors Summit 2023. We should take advantage of these opportunities,” said Adityanath, affirming Uttar Pradesh’s endeavour to become the third state in India (after Gujarat and Odisha) to offer financial and non-financial incentives dedicated to semiconductor manufacturing.
The CM emphasised the significance of evaluating other state policies and engaging industry experts and stakeholders in formulating a robust semiconductor policy tailored to UP’s strengths and potential.
The move is expected to not only attract significant investments but also bolster technological advancements and job creation in the state.
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