Uttar Pradesh is set to host its first semiconductor OSAT (Outsourced Semiconductor Assembly and Testing) unit. The units have been allotted to global electronics giant Foxconn and India's HCL Group 30 acres of land In Yamuna Expressway Industrial Development Authority (YEIDA) area.
This is a significant step towards enhancing India's semiconductor manufacturing capabilities and is in line with the country's ambition to strengthen its position in the global electronics market. However, the project still awaits the approval of the central government to officially start.
HCL Group's strategic choice for Uttar Pradesh
HCL, which holds a majority stake in the joint venture, has chosen Uttar Pradesh as the ideal location for the OSAT unit due to its familiarity with the state. HCL is headquartered in Noida, so the company has a significant advantage in managing the project from its strong home base. Foxconn, which holds a 40% stake in the joint venture, has tasked HCL with taking the final decision on the location, reports Economic Times.
Incentives and policy support boost UP's appeal
One of the key factors attracting HCL and Foxconn to Uttar Pradesh is the state's comprehensive semiconductor policy. The Uttar Pradesh Semiconductor Policy 2024 offers substantial incentives, including assistance on capital investment, interest subsidy, rebate on land value and waiver on power charges. Chief Minister Yogi Adityanath has highlighted the state's growing importance as a hub for semiconductor design engineering, which increases its appeal to tech companies looking to expand in India.
Foxconn's growing presence in India
Foxconn, a global leader in electronics manufacturing, continues to expand its presence in India. The company has made significant investments, with its operations in India expected to contribute over $10 billion by 2024. In addition, Foxconn has played a key role in job creation, employing approximately 48,000 employees across the country. This OSAT project with HCL will further strengthen India's position in the semiconductor industry while boosting local employment and economic growth.
conclusion
With strategic support from land allotment and state incentives, Uttar Pradesh is set to become a major player in India's semiconductor industry. While Foxconn and HCL await central government approval, the OSAT unit is a major step in the country's ambition to boost high-tech manufacturing and economic growth.
