UP 2.0: Shifting Gears to Become India’s Next Semiconductor Hub

The Uttar Pradesh Cabinet, chaired by Chief Minister Yogi Adityanath, has approved amendments to the Uttar Pradesh Semiconductor Policy-2024 to enhance the state's attractiveness as a destination for semiconductor and electronics manufacturing investments.

The revised policy seeks to align the state's regulatory and incentive framework with evolving industry requirements, investor expectations, increasing competition among states and the broader objectives of the India Semiconductor Mission. The policy, originally notified on 19 January 2024 and valid for a period of five years, has been updated to address operational concerns raised by industry stakeholders and to further improve the ease of doing business in the state.

According to the government, the amendments introduce greater policy clarity, streamline implementation provisions and strengthen the overall investment ecosystem for semiconductor fabrication facilities, semiconductor packaging and testing units, and related electronics manufacturing projects. The revisions are expected to enhance Uttar Pradesh’s competitiveness in attracting both domestic and global investors seeking to establish advanced semiconductor manufacturing operations.

One of the key amendments mandates that beneficiary companies maintain commercial production for a minimum period of three years. The provision is intended to ensure long-term industrial commitment, encourage sustainable manufacturing operations and prevent speculative investments aimed primarily at availing government incentives without establishing enduring production capabilities.

The policy changes are expected to support the development of a robust semiconductor ecosystem in Uttar Pradesh, generate high-value employment opportunities, attract advanced technology investments and contribute to India's efforts to strengthen domestic semiconductor manufacturing capabilities.

News by Rahul Yelligetti.