Uttar Pradesh’s Semiconductor Policy

• 08 Jan 2024

Why in News?

Recently, Uttar Pradesh Chief Minister Yogi Adityanath ordered officials to prepare the state's semiconductor policy.

• The decision came after taking cognizance of the significant role that semiconductors are playing in today's rapidly evolving technology-driven global economy.

Key Points

• According to estimates, the global semiconductor ecosystem is expected to have generated revenues exceeding USD 950 billion in the fiscal year 2022.
  • The semiconductor chip sector has announced an investment of more than USD 500 billion for the last two years.
• The Centre is giving incentives for semiconductor manufacturing services like semiconductor fabs, display fabs, and compound semiconductors.
  • In 2021, India announced its roughly USD 10 billion-dollar Production-Linked Incentive (PLI) scheme to encourage semiconductor and display manufacturing in the country.
  • 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.
• There should be a provision for the disbursement of financial and non-financial incentives under Uttar Pradesh's policy for attracting global semiconductor investors.

Semiconductors

• Semiconductors are a class of crystalline solids intermediate in electrical conductivity between a conductor and an insulator.
• They are employed in the manufacture of various kinds of electronic devices, including diodes, transistors, and integrated circuits.
  • Such devices have found wide application because of their compactness, reliability, power efficiency, and low cost.