The city is poised to emerge as one of India’s largest hubs for semiconductor manufacturing following the state cabinet’s approval of two significant investment proposals this week.
One proposal is of Rs 27,000-crore investment by Tarq Semiconductors, a joint venture of the Hiranandani Group, and the other is of Rs 3,700-crore project by Vama Sundari Investments (HCL Group). The Tarq facility will be a ‘fab’, short for fabricator, which manufactures integrated circuits or microchips that power a wide range of devices from smartphones to car computers, laptops, and TVs. Both units are slated to be established off the Yamuna Expressway, near the upcoming Noida International Airport, which is the center of Uttar Pradesh’s major business project plans.
The agreement for the Tarq facility was finalized during the state’s Global Investor Summit. Arun Vir Singh, CEO of the Yamuna Expressway Industrial Development Authority (YEIDA), stated, “Set to be constructed on 125 acres in Sector 28, the Tarq facility will serve as a cornerstone in Uttar Pradesh’s initiative to establish a strong semiconductor supply chain. The semiconductors manufactured here will be crucial for a variety of household electronic devices.”
Singh has stated that the Hiranandani Group is committed to completing the facility within two years, with the expectation that chip production will commence shortly thereafter. The state government plans to enhance Tarq’s investment with capital subsidies and additional incentives offered by the Centre.
The facility will span 114 acres dedicated to industrial purposes, alongside an extra 11 acres allocated for green space. As per the state’s semiconductor policy, Tarq is required to ensure uninterrupted production for a period of three years commencing from the start date.
Tarq submitted an application to the central government’s India Semiconductor Mission (ISM) last April. In January, the YEIDA board sanctioned the allocation of 125 acres in Sector 28 to the Hiranandani Group for a semiconductor park. Now that the cabinet has given its approval, the subsequent phase is obtaining clearance from the Central government.