UP govt approves ₹8,500 cr for two semiconductor projects

The projects proposed by Tarq Semiconductors Pvt Ltd and Vama Sundari Investments (Delhi) Pvt Ltd are expected to attract a combined investment of ₹32,146 crore

The Uttar Pradesh government has approved financial incentives worth over ₹8,500 crore for two semiconductor manufacturing projects under its Semiconductor Policy-2024, aiming to bolster growth and generate employment opportunities around Noida international airport, officials said.

Tarq Semiconductors aims to generate 1,000 direct and 10,000 indirect jobs, while Vama Sundari Investments will target creation of 3,780 direct and indirect jobs. (Sunil Ghosh/HT Photo)

The projects proposed by Tarq Semiconductors Pvt Ltd and Vama Sundari Investments (Delhi) Pvt Ltd are expected to attract a combined investment of ₹32,146 crore, they added. 

Tarq Semiconductors, a part of the Hiranandani Group, plans to invest ₹28,440 crore in Sector 28 to produce compound semiconductors, silicon photonics devices, integrated circuits, and optoelectronic components. Meanwhile, Vama Sundari Investments has earmarked ₹3,706 crore to establish a facility in Sector 10, focused on display driver integrated circuits (DDIC) and semiconductor assembly, officials added. 

“These facilities will position Uttar Pradesh as a key player in India’s semiconductor ecosystem,” said Arun Vir Singh, chief executive officer of the Yamuna Expressway Industrial Development Authority (Yeida). However, both projects await final approval from the central government to commence operations, according to officials. 

“The UP government has issued Letters of Comfort to both companies, detailing the incentives under the Semiconductor Policy. The incentives, including capital subsidies, land rebates, and tax exemptions, will only be disbursed after the projects receive central government approval. Tarq Semiconductors has been awarded a capital subsidy of ₹7,037 crore, along with a 75% rebate on land costs valued at ₹321 crore and 100% exemptions on stamp duty and registration fees amounting to ₹30 crore. Vama Sundari Investments has received a capital subsidy of ₹919.31 crore, a land rebate of ₹124.37 crore, and stamp duty exemptions worth ₹1.16 crore,” Singh added. 

Yeida officials further said that additional benefits for both companies include a 10-year electricity duty exemption, dual power grid support, and subsidies for water and power consumption. A special allocation has also been made for skilling and workforce development, including annual internship support for 500 engineering students and a ₹1 crore talent attraction grant per unit. 

According to officials, the projects are expected to create significant employment opportunities.

Tarq Semiconductors aims to generate 1,000 direct and 10,000 indirect jobs, while Vama Sundari Investments will target creation of 3,780 direct and indirect jobs. Their proximity to the Noida international airport is seen as a strategic advantage to integrate Uttar Pradesh into India’s burgeoning semiconductor industry. 

In response, Darshan Hiranandani, CEO of the Hiranandani Group, pointed out the readiness to begin construction, saying, “We need final approval from the government of India, which is the last step in the process, and we will start work on the ground as soon as we receive it.”