How YEIDA will 'UP' the semiconductor game for Uttar Pradesh

After PM Narendra Modi-led-government launched the 'Semiconductor Mission' in 2021 in a bid to position India as a global hub for hi-tech production and attract large chip makers, Uttar Pradesh has shown its willingness to become the hub of semiconductor manufacturing.

Armed with a pro-industry policy, the state government under the leadership of Yogi Adityanath has been wooing the private sector players to set up semiconductor units in UP as it intends to set up a semiconductor and electronics manufacturing hub in Sector 10 in Noida.

The semiconductor cluster will be alone developed on 700 acres, according to Yamuna Expressway Industrial Development Authority (YEIDA) CEO Arun Vir Singh. An investment of up to Rs 1 lakh crore is expected to be made that would possibly create 65,000 jobs in the region.

"The country is still dependent on China and Taiwan for semiconductors. Once the cluster is developed, they will get tough competition," CEO Arun Vir Singh said.

During his visit to Investors' Summit in Mumbai in January, UP CM Yogi Adtiyanath said he was keen to get a semiconductor fabrication unit in the state. "Country's 45 per cent of mobile manufacturing is in Uttar Pradesh, and also 50 per cent of mobile repairing. The country's first display manufacturing unit was set up in UP. If we have to grow in the area of ITMS (Information technology for Manufacturing Systems) then semiconductor is required, and you will see something related to that in this investor summit. During the investor summit you will see that we will be successful in attracting a semiconductor Fab unit in UP," the Indian Express quoted the UP CM as saying.

The UP government's dream to make the state the hub of semiconductor manufacturing got a boost after a private firm recently sought 100 acres of land from the Yamuna Expressway Authority.

The Hiranandani Group, which was allotted 20 acres in Knowledge Park 5 in September 2020 for setting up UP's first data centre, has written to the Yamuna Expressway Authority expressing its eagerness to set up a semiconductor assembly testing marking and packaging (ATMP) unit in the YEIDA region.

"We are in the process of filing the application with the government of India under the Indian Semiconductor Mission (ISM). Our group is already successfully operating in the state of UP through our data centre division called Yotta Data Services Pvt Ltd," the Times of India quoted its CEO Darshan Hiranandani as saying in the letter.

"We are now keen to expand our footprint by piloting our semiconductor division project in UP as well. We have incorporated Tarq Semiconductors Pvt Ltd in order to forward our semiconductor vertical," he added. In the first phase, the company has anticipated over Rs 2,500 crore investment.

"We are very keen to establish this facility in YEIDA (region). While we will seek final allotment of land and InvestUP formalities after receiving clearances from ISM, we would be grateful if YEIDA can confirm availability of 95-100 acres of land in their facilities near the Jewar airport," he said.

What the private firm has sought from the government is 200,000 litres of water per hour in Phase 1 and 750,000 litres per hour for all 3 phases for running the unit and a power substation providing 50MW.

With abundant water availability, and great connectivity with a network of expressways, and international airports, UP's dream to become the hub of semiconductors manufacturing is on right track.

In other words, YEIDA will 'UP' the semiconductor game for Uttar Pradesh.