Uttar Pradesh is emerging as a major high-tech manufacturing hub, attracting ₹45,000 crore in investments across semiconductors, electronics and clean energy.
NEW DELHI: Uttar Pradesh has secured investment commitments exceeding ₹45,000 crore from eight major companies, marking a significant step in the state’s transformation into a high-tech manufacturing hub.
The projects, concentrated within the Yamuna Expressway Industrial Development Authority region near the upcoming Noida International Airport at Jewar, span semiconductor packaging, advanced electronics and clean energy manufacturing, together expected to generate over 25,000 direct jobs.
What makes this package particularly credible is how far several projects have already progressed. Chief Minister Yogi Adityanath has personally handed over land allotment letters to three anchor companies, India Chip, Ascent Circuits and Amber Enterprises, moving them well beyond the typical investment summit MoU stage into genuine on-ground execution.
A Leap Into Semiconductor Manufacturing
The centrepiece of this package is India Chip Private Limited, a joint venture between HCL and Foxconn, which has secured both India Semiconductor Mission approval and formal Cabinet clearance for a ₹3,706 crore chip assembly and testing facility.
This addresses a longstanding gap in India’s electronics ecosystem, the country has historically had to send processed silicon wafers abroad for final packaging and testing before they could be used in phones, laptops and automotive systems.
Having this capability established locally represents a meaningful step up the value chain rather than simply expanding assembly volumes.
This is being complemented by two component manufacturers securing their own dedicated land parcels. Ascent Circuits will produce flexible and high-density PCBs along with semiconductor substrates, while Amber Enterprises will manufacture copper-clad laminates and circuit board assemblies.
Together with the chip packaging facility, these investments create a integrated supply chain within a compact geographic cluster, exactly the kind of deep manufacturing ecosystem India has been working to build.
Strong Complementary Growth in Clean Energy
Alongside the electronics push, renewable energy manufacturing forms the largest single component of the package by value.
SAEL Solar is establishing an integrated 5 gigawatt solar cell and module manufacturing facility, directly supporting India’s push toward domestic solar production self-reliance and reducing dependence on imported components.
Avaada Electro’s ₹16,139 crore commitment, the single largest in the package, further reinforces the state’s ambitions in green energy manufacturing.
Interestingly there’s a genuine technical synergy between these two sectors. Both solar cell fabrication and semiconductor packaging require similarly specialised infrastructure, ultra-clean manufacturing environments, high-reliability power and large volumes of purified water.
By clustering these projects in adjacent sectors, Uttar Pradesh can build shared utility infrastructure serving both industries efficiently, a smart piece of industrial planning that reduces costs for everyone involved.
Policy Incentives That Move the Needle
Uttar Pradesh’s Semiconductor Policy 2024 offers a particularly compelling incentive structure, layering a 50% state capital subsidy directly on top of the central government’s matching support under the India Semiconductor Mission, together covering up to 75% of eligible project costs.
For the India Chip facility specifically, the state has already approved a direct subsidy exceeding ₹919 crore alongside land cost rebates and complete stamp duty exemption, tangible commitments rather than mere policy promises.
This stacked incentive approach, combined with a ten-year electricity duty waiver and dedicated dual-grid power connections, gives Uttar Pradesh a genuinely competitive edge over other states chasing similar investments.
Infrastructure Being Built to Match the Ambition
Encouragingly the state isn’t just allocating land, it’s actively building the supporting infrastructure these facilities need. Environmental clearance has already been granted for a ₹339 crore common infrastructure package in the electronics manufacturing cluster, including a sewage treatment plant, high-voltage substations and a dedicated industrial water treatment facility, with completion targeted for early 2028. This kind of proactive utility planning meaningfully de-risks the transition from land allotment to actual factory operations.
A Location With Strategic Advantages
The proximity to Jewar airport adds a distinctly practical advantage for this cluster. High-value, weight-sensitive products like packaged microchips and populated circuit boards depend heavily on air freight and having a major international airport developing right alongside this industrial corridor, together with access to the Dedicated Freight Corridor, positions this region as a well-connected manufacturing and logistics hub for Northern India.
Building on Existing Strengths
This new investment also builds naturally on Uttar Pradesh’s existing manufacturing base, the state already accounts for over 55% of India’s mobile phone assembly.
Adding local chip packaging and component manufacturing capability means regional device makers can increasingly source critical parts within the state itself, strengthening the entire regional supply chain and reducing reliance on imports from East Asia.
With land already allotted to key anchor projects, strong layered incentives and infrastructure actively under construction, Uttar Pradesh’s ₹45,000 crore push represents a well-structured step toward establishing a serious high-tech manufacturing corridor in India.
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