The Central government’s recently approved Production Linked Incentive (PLI) scheme for the promotion of the semiconductor industry in the country, is all set to benefit Uttar Pradesh in a big way.
The PLI scheme is expected to lead to an investment of Rs 76,000 crore in semiconductor manufacturing over the next five to six years.
This scheme will help in the design, manufacturing, packing and testing of microchips in the country and develop a complete ecosystem.
According to the government spokesman, Uttar Pradesh’s new electronics manufacturing policy will attract huge investments in this sector.
Semiconductors are colloquially called integrated circuits or ICs. In this policy, a provision has been made to promote the semiconductor (IC) industry.
Under the Electronics Manufacturing Policy-2017 of the State government, the target of investment of Rs 20,000 crore has been achieved in three years by investments of about 30 investors.
More than three lakh jobs were created through this investment. After this, under the new UP Electronics Manufacturing Policy-2020 brought out in August 2020, a target of investing Rs 40,000 crore and providing employment to four lakh people have been set in the next five years.
Under this new policy, multi-national companies like Microsoft, MAQ, Adani Group, Hiranandani Group, Netmagic Services, STT Private Limited and Agarwal Associate Limited have taken the initiative to set up data centres in Noida.
The new Electronics Manufacturing Policy-2020 has promised to give several concessions to the investors setting up the semiconductor industry in the state.
Officials of the IT department say that in Uttar Pradesh, many reputed companies from China, Taiwan and Korea have invested in the IT sector and point out that these companies also will take initiative to invest in the semiconductor sector. This will be beneficial for them because semiconductors are used in all the electronic devices that are being made at present.
World’s renowned IT companies are now in Uttar Pradesh and other big companies of the country will soon take the initiative to invest in the hardware sector, the spokesman said.
Officials of the IT department say that till a few years ago, mobile handsets were not made in Uttar Pradesh, but now big multinational companies are making mobile handsets, laptops, TVs and other electronic equipment in the state. Mobile handsets made in UP are making their mark in the world.
Samsung has already set up a display manufacturing factory in Noida.