Uttar Pradesh’s cabinet has approved a package of incentives aimed at attracting semiconductor projects with capital investment of ₹3,000 crore or more, offering support on financing, taxes, power tariffs and employment costs as the state seeks to draw large manufacturing units.
The incentives include interest subsidies, employee cost support and goods and services tax exemptions for up to 10 years, according to a state government release. The package also provides power tariff relief with electricity costs capped at ₹2 per unit for a defined period, along with concessional water charges to reduce utility overheads.
For workforce support, the state said it will reimburse EPF contributions for in-state professionals up to ₹2,000 per month as part of incentives linked to employment.
The cabinet decision also approved administrative rules for global capability centres, the statement said, as Uttar Pradesh tries to attract technology and innovation hubs alongside manufacturing.
India has been pushing to expand its domestic semiconductor ecosystem through the India Semiconductor Mission, a central government initiative that provides fiscal support for eligible projects. Uttar Pradesh said its latest incentives align with that national effort.
The state pointed to a recently approved semiconductor unit near Noida’s upcoming Jewar International Airport, a joint venture between HCL and Foxconn, as part of the broader momentum around chip and electronics manufacturing in the region. The proposed facility is expected to produce display driver chips, according to the release.
Uttar Pradesh said investment proposals totalling more than ₹32,000 crore are under consideration under its Semiconductor Policy 2024, including proposals from Tarq Semiconductors and Kaynes Semicon.
The state has been building on earlier schemes aimed at electronics manufacturing. Its Electronics Manufacturing Policy 2020 offered capital subsidies, stamp duty exemptions and electricity benefits.
The Semiconductor Policy 2024 expanded support for fabs, compound semiconductors, silicon photonics, sensors and packaging and testing units, with fiscal and non-fiscal incentives including land-related benefits and electricity duty exemptions, the release said.
Uttar Pradesh also said it is linking incentives to skilling and research support, including reimbursement for stand-alone R&D centres and patent registration costs, as it seeks to strengthen the local talent pipeline for high-technology manufacturing.
The state cited connectivity improvements such as expressways and the upcoming Jewar airport, its pool of engineers and technicians and an existing electronics manufacturing base as factors it believes can support semiconductor investment.
