GREATER NOIDA: The Yamuna Expressway Industrial Development Authority (Yeida) on Tuesday said the Uttar Pradesh government cabinet has approved a mega project related to semiconductor manufacturing near the international airport of Noida. The authority will now allocate land for this project.

The UP cabinet on Monday in Lucknow approved the establishment of semiconductor manufacturing units by Vamasundari (HCL Group) and Tarq (Hiranandani Group) near the Jewar airport site, paving the way for this mega project which will fuel the growth of this region, officials said. .

“Vamasundari Investment of the HCL group is likely to invest ₹3,706 crore to set up the manufacturing unit and the project plans to produce 240,000 units of small panel driver ICs and display ICs. The investment has the potential to create jobs for 3,780 people. Tarq semiconductor private Ltd will invest ₹28,440 crore in their unit in this region. Both these projects are supported by the state IT department and will create a major semiconductor manufacturing unit,” said Arun Vir Singh, CEO, Yeida.

The cabinet approved the IT department’s proposal since this company will be in joint venture with Foxconn. The project will cover 50 acres and will require 19,000 KVA of electricity and 2,000 MLD of water per day, officials said.

The proposal was approved since this semiconductor project will employ 1,000 people directly and 10,000 indirectly. The government will provide the company with a capital grant of ₹7,037 million. The state will provide additional financial incentives as production begins, Yeida officials said.

These incentives from the UP government are in addition to those provided by the central government.

HCL Group’s Vama Sundari Investments (Delhi) Private Limited (VSIPL) holds a 44.17% stake in HCL Technologies Limited (HCL Tech), India’s third largest IT/ITES company. In collaboration with Foxconn Hon Hai Technology India Mega Development Private Limited, VSIPL will establish an outsourced semiconductor assembly and testing (OSAT) facility in India, with VSIPL holding 60% stake and Foxconn 40% in this joint venture.

The factory is expected to produce small panel driver integrated circuits and display driver integrated circuits (DDICs), with an annual production capacity of 240,000 units. The project is likely to create 3,780 direct and indirect jobs.

The VSIPL received a ‘letter of intent’ from Yeida on May 24, 2024 for allotment of land in Sector 10 near Noida Airport along the Yamuna Expressway, officials said. The water requirements of the facility are projected at 2,000 MLD, with a water recycling efficiency of 85%.

Total expenditure over the first five years, including capital and working capital, is estimated at ₹3,706.12 crores.

Apart from this, Tarq Semiconductor Private Limited will spend ₹28,440 crore for establishing the unit in Sector 28 near the airport along the Yamuna Expressway.

Tarq Semiconductors had already applied to the central government under the ISM program in April last year.

“We now need final approval from the Indian government, which is the final step in the process. We will begin work on the ground as and when government approval is given. If government approval comes in December, we will seek the required approvals and begin work on site in April. We plan to start operations within 18 months once work begins at the site,” said Darshan Hiranandani, CEO, Hiranandani Group.