Uttar Pradesh will be most favourable state for semiconductor manufacturing units: CM Yogi

Uttar Pradesh [India], January 17 (ANI): In a high-level meeting on Wednesday, Chief Minister Yogi Adityanath reviewed the presentation based on the state's proposed Semiconductor Policy 2024 and issued necessary guidelines to the officials.
The Chief Minister stated that semiconductor manufacturing is crucial for advancement in industries as well as efficiency expansion in devices like smartphones, computers, and medical equipment. It also promotes innovation in Artificial Intelligence, the Internet of Things, and Quantum Computing.
Emphasizing the need for a robust semiconductor manufacturing ecosystem in Uttar Pradesh, the Chief Minister said, "It would not only contribute to the state's economic growth and innovation but also create substantial employment opportunities, enhancing self-reliance in strategically important areas."
Stressing the importance of training the youth in semiconductor manufacturing, Chief Minister Yogi Adityanath proposed incorporating such courses in technical institutes, including the two IITs in the state. At the same time, arrangements should be made for two years of training for the youth under the CM Internship Program in semiconductor industries, he stated.
"A supportive fabless ecosystem should be developed within the state with a focus on targeting chip design enterprises and startups," he added.
He also emphasized the need to foster a strong collaboration between the industry and the education sector to cultivate a skilled workforce.
The Chief Minister said that the semiconductor chip sector has announced plans to invest more than $500 billion in the last two years. Various reputed companies have announced the setting up of fab units.
The Chief Minister said that to attract investment in the semiconductor sector, the Government of India has decided to provide an incentive outlay of 10 billion US dollars.
"The Government of India is giving incentives for semiconductor manufacturing services like semiconductor fabs, display fabs, and compound semiconductors. The state government should announce its attractive policy in this regard. During the Global Investors Summit 2023, we received encouraging proposals in the sector. We should take advantage of these opportunities," he said.
"Having fab units, compound semiconductors, outsourced semiconductors, assembly and test units, and testing and packaging units all contribute to a better semiconductor and display ecosystem. We must also create such an environment," he added.
He also, stated that "our policy should include provisions for the disbursement of financial and non-financial incentives to attract global semiconductor investors. Uttar Pradesh will be the fourth state in the country to do so. The new policy should include additional capital infusions in addition to those approved by the Government of India. There should also be a provision for exemption in stamp duty on purchase/lease of land. Similarly, clear provisions should be made in the policy for exemption in electricity duty, net SGST reimbursement, dual power grid network transmission, and wheeling charges, skill development and training, patents, water supply, power banking, and research and development assistance."
"While preparing the policy, the policies of other states should also be assessed in this regard. Also, consult sector experts/stakeholders," he added. (ANI)