Noida’s Semiconductor Surge: UP Cabinet Greenlights Mega Projects By Hiranandani And HCL

Noida is on its way to becoming one of India's largest semiconductor manufacturing hubs, with two significant investment proposals receiving approval from the state cabinet in Lucknow earlier this week.

The first project is a Rs 3,700 crore initiative by Vama Sundari, part of the HCL Group, and the second is a Rs 27,000 crore investment from Tarq Semiconductors, owned by the Hiranandani Group.

Both projects have the backing of the state IT department and are set to play a major role in establishing Noida as a center for semiconductor manufacturing, according to Arun Vir Singh, CEO of the Yamuna Expressway Industrial Development Authority (YEIDA).

The Hiranandani Group’s Tarq Semiconductors will be a fabrication unit, or "fab," specializing in the production of integrated circuits and microchips.

Planned for Sector 28 near the Jewar airport along the Yamuna Expressway, the unit will see an investment of Rs 28,440 crore. The Company had already filed an application with the Central govt under the India Semiconductor Mission (ISM) scheme last April.

In January, the YEIDA board approved the proposal to allocate 125 acres in Sector 28 to the Hiranandani Group for the establishment of a semiconductor park. With the cabinet's approval now in place, the next step is clearance from the Centre.

“ We will start the work at the ground as and when the government approval will be given. If the approval from the government happens in December, we will seek requisite approvals and start work at the site in April. We have plans to start operations within 18 months once the work begins at the site,” said Darshan Hiranandani, chief executive officer, Hiranandani Group.

This project, a joint venture with Foxconn, will see VSIPL holding a 60 per cent stake, while Foxconn Hon Hai Technology holds 40 per cent.

The VSIPL received a ‘letter of intent’ from Yeida on 24 May 2024, for land allotment in Sector 10 near Noida airport along Yamuna Expressway, said officials.

In addition, YEIDA has allocated 50 acres in Sector 10 to Bharat Semi Systems Pvt Ltd, a startup that will establish a semiconductor manufacturing unit as part of a strategic technology agreement forged between India and the United States.

Announced following discussions between Prime Minister Narendra Modi and U.S. President Joe Biden in Wilmington on 21 September this year, the joint initiative aims to build a semiconductor "fab" that will produce critical materials like infrared, gallium nitride, and silicon carbide semiconductors.

Supported by the India Semiconductor Mission (ISM) and involving partnerships with Bharat Semi, 3rdiTech, and the U.S. Space Force, this fab is set to be India's first multi-material semiconductor facility, and among the first of its kind globally.

Bharat Semi Systems plans to invest Rs 2,350 crore, starting with an initial investment of Rs 800 crore in the first phase, contingent on obtaining necessary approvals over the next year.