NEW DELHI: Uttar Pradesh is engaging with semiconductor companies to facilitate the establishment of a fabrication unit in the state, said a top state government official.
“A lot of design and R&D centers are coming up. We still do not have a fab unit. We are working on that. That is a very difficult thing to do. But we are working with companies and countries which are in this space,” Vijay Kiran Anand, secretary (infrastructure and industrial development), government of Uttar Pradesh, told ETElectronicsWorld in an interview.”There are active discussions, and we are working on them.”
The Central government’s India Semiconductor Mission (ISM), with a nearly ₹76,000 crore fiscal outlay, has led to multi-billion-dollar investments in semiconductor OSAT/ATMP and fabrication units in select states.
This year, the government has also notified the Semicon 2.0 programme with a ₹1.27 lakh crore outlay, focusing on six key pillars, including bolstering semiconductor units, strengthening domestic supply chain resilience, and enhancing research and development (R&D) and design capabilities.At present, only Tata Electronics is building India’s first commercial semiconductor fabrication facility (Fab) in the Dholera Special Investment Region (SIR), Gujarat, in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC).
Anand, however, said that original equipment manufacturers (OEMs) such as South Korea’s Samsung Electronics and homegrown Lava have manufacturing facilities in Noida.”The supply chain players are also there in our state, and we are seeing clusters emerging in the Noida region, and in other areas also, such as electronics component manufacturing,” said the official, who is also the CEO of investment promotion and facilitation agency Invest UP.
Under the Uttar Pradesh Electronics Manufacturing Policy of 2020, the state government offers an interest subsidy of 5% per annum on loan interest up to ₹1 crore annually for five years to eligible ESDM units, while ESDM parks can claim up to 60% of annual interest capped at ₹10 crore yearly for seven years.Additionally, units enjoy up to 50% electricity duty exemption for 10 years, with a full reimbursement of patent filing expenses, up to ₹5 lakh for domestic and ₹10 lakh for international patents, as part of the Policy. It also offers benefits such as stamp duty exemption on land purchase or lease, among others.
“We have 200 acres of the ESDM cluster already allotted and being developed. The HCL-Foxconn OSAT plant is also coming up, and the new developments are getting concentrated around the (Jewar) airport,” the official said. “4,000 industry units are already here, and now a large part of the electronics cluster is coming up.”
In February 2026, Prime Minister Narendra Modi laid the foundation stone of India Chip Private Limited’s outsourced semiconductor assembly and test (OSAT) facility in YEIDA (Yamuna Expressway Industrial Development Authority) in Jewar, Greater Noida.
India Chip is a 60:40 joint venture between the HCL Group and Taiwanese Foxconn. The facility, being set up with an investment of ₹3,700 crore, is expected to become operational by 2028.Furthermore, Lava has said it plans to invest around ₹1,100 crore over the next five years to strengthen its foothold in the electronics components ecosystem in Uttar Pradesh, in line with the government’s Make in India vision, ETElectronicsWorld reported earlier.
The state government is also seeking investments from multinational companies, and Uttar Pradesh has abundant supply of power, land, and water, which support crucial requirements of industrial clusters. “We are inviting more companies there, and we are coming up with a Japan city, Singapore city, Korea city, and so on,” Anand said.
