UP CM Yogi issues instructions to prepare semiconductor policy of state

Uttar Pradesh Chief Minister Yogi Adityanath on Wednesday highlighted the significant role of semiconductors in today's rapidly evolving technology-driven era.

In a high-level meeting, the Uttar Pradesh Chief Minister gave instructions to prepare the semiconductor policy of the state.

According to estimates, the global semiconductor ecosystem is expected to have generated revenues exceeding $950 billion in the fiscal year 2022. Certainly, this is a broad area with immense possibilities.

Yogi said that the semiconductor chip sector has announced an investment of more than $500 billion for the last two years. "Various reputed companies have announced the setting up of fabrication units," he said.

The Chief Minister said that to attract investment in the semiconductor sector, the Government of India has decided to provide an incentive outlay of 10 billion US dollars. For the semiconductor and display ecosystem, having fabrication units, mixed semiconductors, outsourced semiconductors, assembly and test units, testing, and packaging units creates a better ecosystem. We also need to create such an environment.

He said that the Centre is giving incentives for semiconductor manufacturing services like semiconductor fabs, display fabs, and compound semiconductors. "The state government should announce its attractive policy in this regard. We have also received encouraging proposals in this sector during the Global Investors Summit 2023. We should take advantage of these opportunities," he added.

Yogi also said that there should be a provision for the disbursement of financial and non-financial incentives under its policy to attract global semiconductor investors. Uttar Pradesh will be the third state in the country to do so.

He stated that while preparing the policy, the policies of other states should also be evaluated. Consult with industry experts or stakeholders as well.