LUCKNOW, Jan 17 : Chief Minister Yogi Adityanath on Wednesday said that semiconductor manufacturing is crucial for advancement in industries as well as efficiency expansion in devices like smartphones, computers, medical equipment and it also promotes innovation in Artificial Intelligence, the Internet of Things and Quantum Computing.
While reviewing the presentation based on the state’s proposed Semiconductor Policy 2024 and issued necessary guidelines to the officials, the CM emphasised on the need for a robust semiconductor manufacturing ecosystem. “It would not only contribute to the state’s economic growth and innovation, but also create substantial employment opportunities, enhancing self-reliance in strategically important areas,” he said.
Stressing the importance of training the youth in semiconductor manufacturing, he proposed incorporating such courses in technical institutes, including the two IITs in the state. “At the same time, arrangements should be made for two years of training for the youth under the CM Internship Program in semiconductor industries,” he said.
The CM said that a supportive fabless ecosystem should be developed within the state with a focus on targeting chip design enterprises and startups. He emphasized the need to foster a strong collaboration between the industry and the education sector to cultivate a skilled workforce.
He said that the semiconductor chip sector has announced plans to invest more than 500 billion dollar in the last two years. “Various reputed companies have announced the setting up of fab units,” he said.
Yogi said that to attract investment in the semiconductor sector, the Government of India has decided to provide an incentive outlay of 10 billion US dollars. “Having fab units, compound semiconductors, outsourced semiconductors, assembly and test units, and testing and packaging units all contribute to a better semiconductor and display ecosystem. We must also create such an environment,” he said.
He said that the Union Government is giving incentives for semiconductor manufacturing services like semiconductor fabs, display fabs and compound semiconductors. “The state government should announce its attractive policy in this regard. During the Global Investors Summit 2023, we received encouraging proposals in the sector. We should take advantage of these opportunities,” he said.
The CM said that our policy should include provisions for the disbursement of financial and non-financial incentives to attract global semiconductor investors. “UP 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 Union Government,” he said.
He said, “There should also be a provision for exemption in stamp duty on purchase and lease of land. Similarly, clear provisions should be made in the policy for exemption in electricity duty, net SGST reimbursement, dual power grid network transmission, and wheeling charges, skill development and training, patents, water supply, power banking, and research and development assistance.”
Yogi said that while preparing the policy, the policies of other states should also be assessed in this regard. Also, consult sector experts/stakeholders.(UNI)
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