Uttar Pradesh Cabinet Approves Semiconductor Policy to Boost Investment

Cabinet Approval for Semiconductor Investment

In a bid to enhance high-level manufacturing and generate substantial employment opportunities, the Uttar Pradesh Cabinet, led by Chief Minister Yogi Adityanath, approved a significant proposal on Tuesday aimed at attracting large-scale investments under the Semiconductor Policy 2024. The state government has decided to offer special incentives on a case-by-case basis for semiconductor projects with investments of ₹3,000 crores or more. Finance and Parliamentary Affairs Minister Suresh Khanna informed the media after the Cabinet meeting that 14 proposals were presented, out of which 13 received approval.

Special Incentives to Attract Global Investment

Khanna stated that semiconductor manufacturing is rapidly expanding in countries such as the United States, Europe, Japan, and Taiwan, and the Yogi government aims to position Uttar Pradesh as a key hub in this emerging sector. To achieve this, the Cabinet has approved special incentives for major investors on a case-by-case basis. Under this policy, semiconductor units will be eligible for interest subsidies, employee cost reimbursements, GST exemptions for ten years, and electricity tariff subsidies of up to ₹2 per unit for a decade.

He further mentioned that professionals based in Uttar Pradesh will receive a 100% reimbursement of EPF (Employee Provident Fund) contributions, capped at ₹2,000 per month, along with concessions on water charges. Khanna emphasized that the goal is to attract leading global players in the semiconductor industry and establish Uttar Pradesh as a preferred investment destination. He also noted that currently, the industry is dominated by the United States, Europe, Japan, and Taiwan.