Uttar Pradesh Semiconductor Policy 2024

What is the Uttar Pradesh Semiconductor Policy 2024?

Uttar Pradesh Semiconductor Policy 2024 is an industrial incentive policy of the Department of IT and Electronics, Government of Uttar Pradesh. It was notified on 19 January 2024 through Government Order No. 142/78-1-2024-14/2024, and it offers state-level fiscal and non-fiscal incentives to companies that build semiconductor manufacturing capacity anywhere in Uttar Pradesh.

The policy is a top-up on the central India Semiconductor Mission (ISM) run by the Ministry of Electronics and Information Technology. Where the Government of India already gives up to 50% of project cost as fiscal support to an approved fab, the state adds a further amount on top. The design is deliberate: Uttar Pradesh does not run its own technical appraisal of a chip project, it relies on ISM's approval and then matches part of the central money.

Who runs it

• Nodal agency: UP Electronics Corporation Limited (UPLC), acting as the single window for all semiconductor investors in the state, with a dedicated Project Management Unit of outsourced professionals.
• Policy Implementation Unit (PIU): chaired by the Principal Secretary or Additional Chief Secretary, Department of IT and Electronics. The PIU examines proposals and recommends them upward.
• supported Committee: chaired by the Chief Secretary, with secretaries from Industrial Development, State Tax, Finance, Planning, Energy, Housing, Labour and other departments. Every project also needs approval of the state Cabinet on the supported Committee's recommendation.

The policy is valid for five years from 19 January 2024 and covers the entire state, with no district restriction. Investment made from the notification date onwards counts.

Who is eligible under the UP Semiconductor Policy 2024?

A company can claim incentives if:

• Its project has qualified under one of these India Semiconductor Mission schemes: the Scheme for setting up Semiconductor Fabs in India, the Scheme for setting up Display Fabs in India, or the Scheme for Compound Semiconductors, silicon photonics, sensor fabs and semiconductor Assembly, Testing, Marking and Packaging (ATMP) or Outsourced Semiconductor Assembly and Test (OSAT) facilities.
• The unit is being set up inside Uttar Pradesh.
• The company gives a written undertaking to run commercial production for at least three years from the date commercial production begins.
• The company files with Uttar Pradesh at the same time as it files its proposal with ISM, rather than after the central approval is finished.

Who cannot apply or is not eligible:

• Individuals. Uttar Pradesh Semiconductor Policy 2024 carries no personal benefit. Students, job seekers and self-employed people cannot apply. The only individual-facing element is internship support, which is routed through institutions rather than claimed directly.
• Fabless and chip-design companies. Clause 4.2.5 excludes projects approved under Design Linked Incentives and any fabless activity. Those investors are pointed to the UP IT and ITeS Policy 2022.
• Projects without ISM qualification. A semiconductor-adjacent electronics plant that has not qualified under an ISM scheme is not eligible here; the UP Electronics Manufacturing Policy route applies instead.
• Units seeking to stack state schemes. The policy cannot be dovetailed with any other Uttar Pradesh policy or scheme for the same project.

What incentives does the policy give?

Fiscal incentives

A company must choose either the standalone R&D centre subsidy or the Centre of Excellence support, not both.

Skilling support is a separate head: up to Rs 60 lakh a year for five years (Rs 3 crore in total) for faculty training, technical workshops and expert lectures; internship support of Rs 20,000 per student for up to 500 B.Tech and M.Tech students a year for five years; and a one-time grant of up to Rs 1 crore per unit for 12 months to hire world-class talent.

Non-fiscal incentives include classification of the semiconductor industry as an essential service under ESMA, assured water supply at the project site, permission to buy power through open access, power banking for renewable energy, grid redundancy for FAB projects, a non-disturbance provision protecting the lease once investment is complete, permission for 24x7 three-shift operations including women in all shifts, and self-certification in place of inspection under the Factories Act, Maternity Benefit Act, Shops and Establishments Act, Contract Labour Act, Payment of Wages Act, Minimum Wages Act and the Employment Exchanges Act, except where a specific complaint is made.

How to apply for UP Semiconductor Policy incentives

1. File the ISM proposal first, or simultaneously. The policy requires the applicant to apply under the UP Semiconductor Policy 2024 at the same time as the proposal goes to the India Semiconductor Mission at MeitY.
2. Register on Nivesh Mitra, the Uttar Pradesh single window portal at niveshmitra.up.nic.in, and create the entrepreneur account for the project company.
3. Open the entrepreneur dashboard and complete the Common Application Form with company, project and site details.
4. Select the UP Semiconductor Policy 2024 from the list of policies to apply for a Letter of Comfort. The portal redirects you to the Online Incentive Management System.
5. Upload the proposal documents; project report, eligible capital investment break-up, ISM filing proof, incorporation papers and the three-year commercial production undertaking.
6. Track the file through the PIU, which examines the proposal and recommends it to the supported Committee chaired by the Chief Secretary.
7. Receive the Letter of Comfort (LoC) after state Cabinet approval. The LoC takes effect only once the Government of India approves the same project, and the incentive cannot exceed 100% of the eligible project cost approved by ISM.

There is no offline application route. Uttar Pradesh has deliberately routed all industrial incentive filings through Nivesh Mitra, which handles online applications, document upload, fee payment, live status tracking and digitally signed NOCs and LoCs.

How is the money actually released?

Uttar Pradesh releases the capital subsidy only after the Government of India releases its share to the investor, and then in pari passu mode — the state puts in its pro rata share into the project's No-Lien Account alongside the central share and the promoter's own contribution. Money in the No-Lien Account can be spent only on authorised expenditure for the approved project.

Three benefits: capital subsidy, land cost rebate, and the stamp duty and registration fee exemption; are available before production starts. Every other fiscal incentive becomes claimable only once commercial production commences. Companies planning cash flows should treat the interest subsidy, electricity duty exemption, wheeling charge exemption, patent reimbursement and housing support as post-production items.

A separate ceiling applies across the board: incentives claimed from all sources, including the Government of India, cannot exceed 100% of the eligible project cost as defined in clause 4.3.

What counts as eligible project cost?

For semiconductor and display fabs, eligible project cost follows section 2.12 of MeitY's Modified Scheme guidelines of 29 May 2023, and covers land, building, plant, machinery, clean room, equipment and associated utilities, research and development, transfer of technology, and other relevant costs such as interest during construction and insurance.

For compound semiconductor, silicon photonics, sensor and discrete semiconductor fabs and for ATMP/OSAT units, the definition follows section 2.11 of the corresponding guidelines of 30 June 2023. Note one important difference here: expenditure on land is not counted towards eligible capital investment for ATMP/OSAT and compound semiconductor units, though the separate 75% land rebate still applies to those production units.

Capital expenditure already counted in the central project cost under the Modified Schemes is eligible for the state capital subsidy only, and not for the other benefits listed in the policy.

Where does the policy stand today?

The semiconductor push in Uttar Pradesh has moved from paper to ground since the policy was notified. According to Invest UP, the Union Cabinet approved an HCL–Foxconn joint venture semiconductor unit in May 2025, to be built in the Yamuna Expressway Industrial Development Authority (YEIDA) area near Jewar international airport, with an investment of about Rs 3,706 crore and a design output capacity of 36 million units per month. Invest UP also reports five project applications received and roughly Rs 32,652 crore of proposed semiconductor investment, with about 1,000 acres identified next to Jewar airport for semiconductor manufacturing.

Common reasons a proposal stalls

• No ISM qualification. This is the single hard gate. A proposal that has not cleared, or at least been filed with, an ISM scheme cannot progress.
• Applying to the state after the central approval. The policy expects simultaneous filing; a late state application delays the Letter of Comfort.
• Fabless or design-linked project filed under the wrong policy. These must go to the UP IT and ITeS Policy 2022.
• Missing three-year production undertaking. The formal undertaking is a policy condition, not a formality.
• Attempting to stack two state policies on the same capital expenditure, which the terms and conditions expressly bar.
• Claiming post-production incentives too early, before commercial production has commenced.

Who to contact for help

• UP Electronics Corporation Limited (UPLC), the nodal agency and PIU secretariat: 10 Ashok Marg, Lucknow 226001. Phone 0522-4130303 to 25, 0522-2286808 and 0522-2286809. Email missiondirectorate@upempolicy.in. Website www.uplc.in.
• Invest UP maintains a semiconductor sector desk and an Udyami Mitra helpdesk for investor queries, along with a grievance redressal helpdesk on its portal.
• Nivesh Mitra at niveshmitra.up.nic.in carries live status tracking for every application filed under a state industrial policy.

Uttar Pradesh Semiconductor Policy 2024 is often searched as the "UP semiconductor niti" or "UP chip policy". Whatever the name used, the route is the same: ISM qualification first, Nivesh Mitra filing second, supported Committee and Cabinet approval third, and a Letter of Comfort at the end.

How to check your application status

Because Nivesh Mitra is the only filing route for the UP Semiconductor Policy 2024, it is also the only place an applicant should look for an authoritative status update. There is no separate offline register to check against.

1. Log in to the entrepreneur account at niveshmitra.up.nic.in with the credentials created at the time of registration, not a fresh signup, since a new account will not show the existing file.
2. Open the application from the entrepreneur dashboard. Each Common Application Form filed for a Letter of Comfort carries its own reference number; use that number, not the company name, when raising any query so the reply can be matched to the right file.
3. Read the stage shown against the file, since Nivesh Mitra reflects where the proposal actually sits: received and under scrutiny at the Policy Implementation Unit, forwarded with a PIU recommendation, listed for the supported Committee chaired by the Chief Secretary, or cleared and awaiting Cabinet approval before the Letter of Comfort is issued.
4. Check the linked India Semiconductor Mission filing separately. The state file and the MeitY filing move on parallel tracks, so a UP-side status of "under review" does not by itself say whether MeitY has cleared the project; the Letter of Comfort only takes effect once the central approval for the same project also comes through.
5. Escalate through UPLC if the status has not moved for a normal review cycle. As the nodal agency and PIU secretariat, UP Electronics Corporation Limited can be reached at 0522-4130303 (extensions run to 25), 0522-2286808, 0522-2286809, or by email at missiondirectorate@upempolicy.in, quoting the Nivesh Mitra reference number.
6. Use the Invest UP semiconductor desk for investment-level queries that go beyond a single file, such as land allocation near the Jewar airport cluster or coordination between multiple approvals for the same investor group; Invest UP's Udyami Mitra helpdesk and portal grievance redressal channel are built for exactly this kind of cross-department follow-up.

Because every fiscal incentive after the Letter of Comfort is claimed against actual project cost and, for most items, only after commercial production starts, a company should also track its own claim submissions inside the portal separately from the initial approval status; an approved Letter of Comfort does not automatically release a later capital subsidy or interest subsidy claim without its own supporting documentation being filed and verified.