UP cabinet gives nod to semiconductor project: Yeida
GREATER NOIDA: The Yamuna expressway industrial development authority (Yeida) on Tuesday said that the Uttar Pradesh government’s cabinet has approved a mega project related to the semiconductor manufacturing near Noida international airport. The authority will now allot land for this project.
The UP cabinet approved the establishment of semiconductor manufacturing units by Vamasundari (HCL Group) and Tarq (Hiranandani Group) near the airport site at Jewar on Monday in Lucknow, paving way for this mega project that will fuel the growth in this region, officials said.
“The HCL Group’s Vamasundari Investment is likely to invest ₹3,706 crore to set up the manufacturing unit and the project has a plan to produce 240,000 units of small panel driver ICs and display integrated circuits. The investment has potential to create employment for 3,780 people. Tarq semiconductor private Ltd will invest ₹28,440 crore in their unit in this region. These two projects are supported by the state IT department, and will establish a major semiconductor manufacturing unit,” said Arun Vir Singh, chief executive officer, Yeida.
The cabinet approved the IT department’s proposal as this company will be in a joint venture with Foxconn. The project will cover 50 acres and require 19,000 KVA of electricity and 2,000 MLD of water per day, said officials.
The proposal was approved since this semiconductor project will employ 1,000 people directly and 10,000 indirectly. The government will provide the firm with a capital subsidy of ₹7,037 crore. The state will provide additional financial incentives as and when the production begins, said Yeida officials.
These incentives from the UP government are in addition to those provided by the central government.
Vama Sundari Investments (Delhi) Private Limited (VSIPL) of the HCL Group has 44.17% stake in the HCL Technologies Limited (HCL Tech) that is India’s third-largest IT/ITES firm. In collaboration with Foxconn Hon Hai Technology India Mega Development Private Limited, VSIPL will establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in India, with VSIPL holding 60% equity and Foxconn 40% in this joint venture.
The facility is expected to produce small panel driver ICs and display driver integrated circuits (DDIC), with an annual production capacity of 240,000 units. The project is likely to create 3,780 direct and indirect jobs.
The VSIPL received a ‘letter of intent’ from Yeida on May 24, 2024, for land allotment in Sector 10 near Noida airport along Yamuna Expressway, said officials. The facility’s water requirement is projected at 2,000 MLD, featuring an 85% water recycling efficiency.
The total expenditure over the first five years, including capital and working capital, is estimated at ₹3,706.12 crore.
Apart from this the Tarq Semiconductor Private Limited will spend ₹28,440 crore in establishing the unit in Sector 28 near airport along Yamuna Expressway.
Tarq Semiconductors had already filed an application with the Central govt under the ISM scheme in April last year.
“Now we need final approval from the government of India, which is the last step in the process. We will start the work at the ground as and when the government approval will be given. If the approval from the government happens in December, we will seek requisite approvals and start work at the site in April. We have plans to start operations within 18 months once the work begins at the site,” said Darshan Hiranandani, chief executive officer, Hiranandani Group.
