Noida: The UP government last month approved incentives amounting to over Rs 8,500 crore for two major semiconductor manufacturing projects expected to take place near the Noida International Airport along the Yamuna Expressway. The incentives, which are part of the UP Semiconductor Policy 2024, need to be approved by the central government.
Together, Tarq Semiconductorswhich is part of the Hiranandani Group, and Vama Sundari Investments, a subsidiary of HCL, will invest Rs 32,146 crore to establish manufacturing facilities in the YEIDA region. Part of the investment – ​​Rs 28,440 crore – will come from Tarq Semiconductors, which plans to set up a unit on 125 acres of land in Sector 28. The facility will manufacture compound semiconductors: gallium nitride, carbide silicon, gallium arsenide. As well as silicon photonic devices, integrated circuits and optoelectronic components. It is expected to generate 11,000 jobs – direct and indirect.
The second project of Vama Sundari Investments, a joint venture of HCL Group and Foxconn Hon Hai Technology India Megadevelopment, will invest Rs 3,706 crore to establish its unit in Sector 10.
This facility is expected to create 3,780 direct and indirect jobs. The 50-acre project received approval in principle for land allocation from YEIDA last May. To support the two facilities, the UP government issued a credit line last month, outlining its incentives.
Tarq will receive a grant of Rs 7,037.50 crore. Additionally, the company will benefit from a 75% discount on land costs, valued at Rs 320.9 crore, and full exemptions from stamp duty and registration fees, amounting to Rs 29 .9 crores. Similarly, Vama Sundari Investments will benefit from a capital grant of Rs 919.3 crore along with a land rebate of Rs 124.4 crore and an exemption of Rs 1.1 crore on stamp duty and registration fees. There is a 10-year exemption on electricity taxes, support for the dual electricity network and subsidies for water and electricity consumption.
The state will also fund skills development. Grants for innovation and employee well-being have been approved. A non-disturbance clause will protect their rental contracts. Once companies finalize their investments, they will receive a YEIDA certificate. Once they have paid the lease in full, their lease deeds can only be canceled upon approval of the YEIDA Board of Directors in case of violations.