Yeida relocates site of semiconductor facility in Noida

The Yamuna Expressway Industrial Development Authority (Yeida) has decided to shift a proposed semiconductor manufacturing facility by Vama Sundari Investments, a joint venture between HCL Group and Foxconn, from Noida Sector 10 to Sector 28, officials said on Friday.

Yeida had previously reserved 48 acres of land in Sector 10 for the manufacturing facility but has been unable to acquire the land so far. So it will allocate 48 acres in Sector 28 instead for the facility. Yeida officials and Vama executives said that Sector 28 also has better infrastructure, making it a more suitable location for the semiconductor manufacturing facility.

“We issued a fresh Letter of Intent (LOI) on Thursday to Vama Sundari Investments, allotting 48 acres in Sector 28 for a semiconductor manufacturing facility. The representatives from Vama Sundari Investments and Foxconn met Yeida officials on Thursday to sign the revised agreement. The company plans to invest ₹3,706 crore in an Outsourced Semiconductor Assembly and Test (Osat) facility, creating 4,000 jobs,” said Arun Vir Singh, chief executive officer of Yeida.

“Sector 28 has essential infrastructure, including power, water, and transport. We have assured the company of Yeida’s support in obtaining necessary approvals. The reservation is valid for one year, during which the company must complete formalities, including lease agreements and environmental clearances,” Singh added.

In a request submitted last month, the company cited Yeida’s proposal to shift the project to Sector 28, where land has mostly been acquired with only a few small portions still pending.

Pawan Kumar Danwar, Vama Sundari’s chief financial officer and company secretary, said, “The Sector 28 land is more suitable due to its existing infrastructure and connectivity. After visiting the proposed land in Sector 28, we find it ideal for establishing the Osat facility.”

The Osat facility will manufacture small panel driver and display driver integrated circuits, with an annual production capacity of 240,000 units. The project is expected to generate 3,780 direct and indirect jobs.

Yeida initially issued an LOI to Vama Sundari in May last year for 50 acres in Sector 10. In August, the state cabinet granted in-principle approval for the allotment, followed by the state government approving incentives of ₹8,500 crore in November for semiconductor projects, including Vama Sundari and Hiranandani’s Tarq Semiconductors.

Tarq Semiconductors, investing ₹28,440 crore in a 125-acre Sector 28 facility, is expected to generate 11,000 jobs. Both projects received Letters of Comfort from the state government, outlining subsidies and incentives. Their applications are pending central government approval.