Uttar Pradesh: Favourable for Semiconductor Manufacturing Units

• 18 Jan 2024

Why in News?

In a meeting Chief Minister Yogi Adityanath reviewed the presentation based on the state's proposed Semiconductor Policy 2024 and issued necessary guidelines to the officials.

Key Points

• The Chief Minister stated that semiconductor manufacturing is crucial for advancement in industries as well as efficiency expansion in devices like smartphones, computers, and medical equipment.
  • It also promotes innovation in Artificial Intelligence, the Internet of Things, and Quantum Computing.
• It would contribute to the state's economic growth and innovation and also create substantial employment opportunities enhancing self-reliance in strategically important areas.
• For training the youth in semiconductor manufacturing, the Chief Minister proposed incorporating such courses in technical institutes, including the two IITs in the state.
  • Arrangements should be made for two years of training for the youth under the CM Internship Program in semiconductor industries.
• The semiconductor chip sector has announced plans to invest more than $500 billion in the last two years.
  • To attract investment in the semiconductor sector, the Government of India has decided to provide an incentive outlay of 10 billion US dollars.
• The CM suggests that the policy should include provisions for the disbursement of financial and non-financial incentives to attract global semiconductor investors.
  • Uttar Pradesh will be the fourth state in the country to do so.
• The new policy should include additional capital infusions in addition to those approved by the Government of India.
  • There should also be a provision for exemption in stamp duty on purchase/lease of land.
• Clear provisions should be made in the policy for exemption in electricity duty, dual power grid network transmission, and wheeling charges, skill development and training, patents, water supply, power banking, and research and development assistance.