Semiconductor

INDIA SCENARIO

The Indian semiconductor market expected to grow at a CAGR of ~20% over the next decade, accounting for ~17% of the global market driven by a strong domestic demand across sectors - Automotive, Consumer Electronics and Telecom

Only 9% of India’s semiconductor components were locally sourced in 2021. 17% local sourcing expected by 2026

80% of the total revenue in Indian semiconductor industry stemmed from mobile phones, smart wearables, IT and other industrial components

UTTAR PRADESH SCENARIO

UP is currently the largest exporter of consumer electronics in India and is considered as a potential hub for semiconductor design and R&D offices

Advantage UP

UPEM Policy 2022 providing capital subsidies, land allotment, infrastructure support, and skill development programs.
Access to seaports & airports for export and import fulfillment
Uninterrupted supply of good water quality (potable water), 24x7 power
Skilled labor availability (training centers, courses, workshops, etc.)
Research and Development Support : Support for technology upgradation, innovation, and product development.
Collaboration with industry associations & organizations to address industry challenges, drive sectoral growth, and create a conducive ecosystem.
1000 Acres of land identified next to Jewar airport dedicated for Semiconductor manufacturing units

Key Investment Opportunities

3 Electronics Manufacturing Clusters (EMC) focusing on mobile manufacturing, consumer durables, Drone, Semiconductor (FAB) defense electronics, Robotics, IoT etc. to be setup
Semiconductor design - Embedded software development, VLSI design and Hardware/board design
Semi-conductor wafer fabrication manufacturing, Light Emitting Diode (LED) manufacturing and Liquid Crystal Display (LCD) manufacturing
Semiconductor manufacturing zones within ESDM and Auto hubs, with essential supporting infrastructure to also host ancillary & downstream industries:

Ancillary industries: Polymer processing, Metals, Chemicals
Downstream industries: Consumer electronics, Aerospace, Automotive

DOMINANT INDUSTRY FORCES

The Union Cabinet approved (February 2024) the establishment of three semiconductor units under ‘Development of Semiconductors and Display Manufacturing Ecosystems in India

Tata Electronics Private Limited will set up a semiconductor fab with 50,000 wfsm capacity in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan.
This fab will be constructed in Dholera, Gujarat with an investment of INR 91,000 crore.
Segments Covered:
1. High performance compute chips with 28 nm technology
2. Power management chips for electric vehicles (EV), telecom, defence, automotive, consumer electronics, display, power electronics, etc. Power management chips are high voltage, high current applications.

Tata Semiconductor Assembly and Test Pvt Ltd ("TSAT") will set up a semiconductor unit (ATMP unit) in Morigaon, Assam with an investment of INR 27,000 crore.
TSAT semiconductor is developing indigenous advanced semiconductor packaging technologies including flip chip and ISIP (integrated system in package) technologies.
Capacity : 48 million per day
Segments Covered : Automotive, electric vehicles, consumer electronics, telecom, mobile phones, etc.

CG Power, in partnership with Renesas Electronics Corporation, Japan and Stars Microelectronics, Thailand will set up a semiconductor unit (ATMP unit for specialized chips) in Sanand, Gujarat with an investment of INR 7,600 crore.
Capacity : 15 million per day
Segments covered : The CG power semiconductor unit will manufacture chips for consumer, industrial, automotive and power applications

KEY DEVELOPMENT IN THE INDUSTRY

Electricity

Electric Substation of capacity 765/400/220 KV(3000 MVA) at Janhagirpur is functional.
Electric Substation of capacity 220/132/33 KV (383MVA) at Sector-32 is under construction.
Electric Substation of capacity 220/132/33 KV (486MVA) at Sector-24 is under construction.
Electric Substation of capacity 220/132KV (180MVA) at Sector-18 is under construction.
Electric Substation of capacity 220/132 is proposed in Sector-28

Power Grid Line

Government in process of installation of 2 transmission lines

Water

Water Availability through Dayanatpur Distributary
Regulator at Dayanatpur Distributary has been made.
Water for Construction through STP at Sector-29 & through Dayanatpur Distributary.
Two Rainy wells of each capacity of 8MLD are proposed for uninterrupted water supply for 365 days 24/7

Waste Management

A STP( Sewerage Treatment Plant) of 60MLD Capacity is under construction near to industrial sector-29 (2.5 km from Sector 10) Common ETP is proposed in Semiconductor & EMC Sector Solid Waste Management(SWM) is proposed in industrial sector

POLICIES & SCHEMES

Click here to View Uttar Pradesh Semiconductor Policy 2024 (English Language)

Establish Uttar Pradesh as a hub of semiconductor ecosystem

Aiding chip manufacturing Eligibility Criteria Projects qualified under any of the following schemes of India Semiconductor Mission by the GoI:

Setting up of Semiconductor & Display Fabs in India.
Setting up of Compound Semiconductors/Silicon Photonics Sensors Fab and Semiconductor ATMP/ OSAT facilities in India.

Capital Subsidy : 50% additional Capital Subsidy on the capital subsidy approved by GOI
Interest Subsidy: @5% p.a. for units with investments up to INR 200 crore, with a maximum limit of INR 1 crore p.a. per unit for 7 years
Land Subsidy for Compound Semiconductors/Silicon Photonics Sensors Fab and Semiconductor ATMP/OSAT facilities: 75% subsidy on the first 200 acres of land purchased from state agencies, and 30% subsidy on additional land purchases for the unit/ancillary units.
Stamp duty exemption: 100% exemption on the purchase/lease of land.
Electricity duty exemption: 100% exemption on electricity duty for 10 years.
Dual power grid provision (FAB units) with the state government reimbursing the cost of one grid (lower of the two), while the investor bears the cost of the other grid.
Transmission and wheeling charges exemption: 50% exemption on wheeling charges/transmission charges for Intrastate power purchases for 25 years.
Skilling and training support: Upto INR 60 lakhs pa for 5 years for faculty training, technical workshops, awareness programs, and expert lectures (total of INR 3 crore).
Internship support for up to 500 students per year for 5 years, with INR 20,000 support per student under the CM Internship Scheme. One-time support of up to INR 1 crore per unit for hiring world-class talent for 12 months.
Standalone RSD Centre: Reimbursement of 25% of the setup cost, capped at INR 10 crore, subject to conditions.
Center of Excellence (COE) establishment support: Up to 50% of the total COE project cost (maximum of INR 10 crore) borne by the Government of UP.Option to avail subsidy for setting up R&D Centre or COE.
Reimbursement of patent registration fees at a rate of 75%, up to a maximum of INR 10 lakh for domestic patents and INR 20 lakh for international patents.
Industrial housing development assistance: 10% of the cost of developing workers' housing (within a 10 km radius of the unit premises) or INR 10 crore, whichever is lower, provided in 7 equal annual installments.

KEY INVESTMENT OPPORTUNITIES

3 Electronics Manufacturing Clusters (EMC) focusing on mobile manufacturing, consumer durables, Drone, Semiconductor (FAB) defense electronics, Robotics, IoT etc.
Semiconductor Design - Embedded software development, VLSI design and Hardware/board design
Semi-conductor wafer fabrication manufacturing, Light Emitting Diode (LED) manufacturing and Liquid Crystal Display (LCD) manufacturing
Semiconductor manufacturing zones within ESDM and Auto hubs, with essential supporting infrastructure to also host ancillary & downstream industries:
- Ancillary industries: Polymer processing, Metals, Chemicals
- Downstream industries: Consumer electronics, Aerospace, Automotive

SECTOR HIGHLIGHTS

Click here to ViewUttar Pradesh Semiconductor

Click Here ToKnow Your Approvals

	Service Name	Timeline (Days)	Category	Criteria
Board of Revenue Website Link	Land Purchase Permission (Dhara 89)	60	Pre-Establishment	In case applicant wants to purchase more than 12.5 Acre Land
Board of Revenue Website Link	Change of Land Use (Section 80)	45	Pre-Establishment	In case applicant wants to change agriculture land to non-agriculture land
Department of Labor Website Link	Approval of plan and permission to construct/extend/or take into use any building as a factory under the Factories Act, 1948	30	Pre-Establishment	If factory having 40 or more workers without power. Or Factory having 20 or more workers with power.
	Registration and grant of license under The Factories Act, 1948	30	Pre-Establishment	If factory having 40 or more workers without power. Or Factory having 20 or more workers with power.
	Registration of principal employer's establishment under provision of The Contracts Labor (Regulation and Abolition) Act, 1970	30	Pre-Operation	Every establishment in which 50 or more workmen are employed
	Registration of establishment under the Inter State Migrant Workmen (RE/CS) Act, 1979	30	Pre-Operation	Every establishment in which 5 or more inter-state migrant workmen are employed.
	Registration under The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996	30	Pre-Operation	Govt - Unit any number and Pvt unit 10 and more employee and Investment 10 Lac and above any number of employees
Department of Stamp and Registration Website Link	Property Registration	1	Pre-Establishment	If applicant wants to register properties
Pollution Control Board Website Link	Consent to Establish Under Air and Water Act (NOC)	120	Pre-Establishment	Mandatory
	Consolidated Form for Consent under Water Act 1974 Air Act 1981 and authorization under the Hazardous and Other Wastes (Management and Transboundary Movement) Rules 2016	120	Pre-Operation	Mandatory
	Authorization under E-Waste (Management) Rules 2016	120	Pre-Operation	If applicant deals with e- waste
	Registration under Plastic Waste Management Rules 2016	90	Pre-Operation	If applicant deals with plastic waste
Uttar Pradesh Fire Services Website Link	NOC from Fire Department (prior to commencement of construction activities) or Provisional	15	Pre-Establishment	Mandatory
Uttar Pradesh Power Corporation Limited Website Link	Power Connection	30	Pre-Operation	If applicant require power connection
Forest and Wildlife Department Website Link	NOC for Tree Felling	15	Pre-Establishment	If applicant wants to cut tree
Registrar Firms Societies and Chits Website Link	Registration of Partnership firms, Society	30	Pre-Establishment	If applicant wants to register Firm or Society
Public Works Department Website Link	Road Cutting Permissions	7	Pre-Operation	In case applicants wants cut road
Directorate of Electrical Safety Website Link	Initial Inspection of Low Voltage Installation	4	Additional Service	If applicant require power connection
Housing Dept./Awas Bandhu Website Link BIDA Website Link GNOIDA Website Link GIDA Website Link NOIDA Website Link YEIDA Website Link UPEIDA Website Link UPSIDA Website Link	Building Plan Approval	15	Pre-Establishment	In case applicant wants to construct building
	Occupancy Certificate	25	Pre-Operation	In case applicant wants to obtain Occupancy Certificate
Urban Department Website Link	Water Connection of Industrial Water	15	Pre-Operation	In case applicant wants a water connection

Sector

Shri. Ritesh Saxena