Introduction: UP Semiconductor Subsidy 2024
India’s semiconductor mission is rapidly expanding, and the UP Semiconductor Subsidy 2024 is one of the most investor-friendly policies introduced by the Government of Uttar Pradesh. With the state positioning itself as a global semiconductor hub, companies exploring semiconductor manufacturing in Uttar Pradesh, fab development, or ATMP/OSAT facilities now have access to powerful incentives, including:
- Capital subsidy
- Land rebate
- Interest subsidy
- ATMP/OSAT-specific incentives
- Infrastructure benefits
- Financial support through state-level facilitation
However, successfully availing these benefits requires expert guidance, because semiconductor projects involve high investment, multi-department approvals, detailed DPR preparation, and strict compliance. This is where Finraja Consultancy Private Limited, a leading subsidy consulting firm, provides complete, end-to-end assistance to ensure applicants secure maximum financial benefits without delays or rejection risks.
Overview of the UP Semiconductor Subsidy 2024
The UP Semiconductor Subsidy 2024 aims to attract global and domestic investors in semiconductor fabrication, display units, compound semiconductors, ATMP/OSAT units, and other high-value semiconductor ecosystem projects.
The policy provides strong financial support for:
- Fab units
- ATMP/OSAT units
- Fabless semiconductor design
- Component manufacturing
- Semiconductor supply chain infrastructure
With high capital intensity in this sector, the policy’s structure is designed to reduce upfront investment burden, increase viability, and boost competitiveness.
Uttar Pradesh Semiconductor Subsidy Incentives
Capital Subsidy—UP Semiconductor Projects
One of the biggest benefits for semiconductor investors is the capital subsidy, which significantly reduces project cost.
Capital Subsidy
Project Type | Capital Subsidy Range |
Fab Units | 30% – 50% of eligible capital investment |
ATMP/OSAT Units | 25% – 40% |
Component Manufacturing | 20% – 30% |
Fabless/Design Units | 10% – 20% |
Land Rebate for Semiconductor Units in Uttar Pradesh
Land is one of the biggest cost elements for semiconductor projects. Under the land rebate UP semiconductor subsidy, eligible applicants can receive:
Category | Land Rebate |
Fab Projects | Up to 75% rebate |
ATMP/OSAT | Up to 60% rebate |
Component/Design | 30%–50% rebate |
Interest Subsidy Semiconductor UP
To reduce financial burden, the policy offers:
Subsidy Type | Range |
Term Loan Interest Subsidy | 5%–7% for a fixed tenure |
Additional subsidy for Mega Projects | +2% extra |
MSME/Small Projects (Design) | 6%–8% |
ATMP/OSAT Uttar Pradesh Incentives
ATMP (Assembly, Testing, Marking & Packaging) and OSAT (Outsourced Semiconductor Assembly & Test) units receive special incentives:
- Capital subsidy (25%–40%)
- Land rebate (up to 60%)
- Electricity duty waiver
- Stamp duty exemption
- Infrastructure support
- Reintegration subsidy for advanced packaging technologies
These incentives make up one of the most competitive semiconductor ATMP/OSAT destinations in India.
Eligibility for UP Semiconductor Subsidy 2024
Eligibility depends on:
- Project category (fab, ATMP/OSAT, design, component)
- Investment size
- Technology standards
- Compliance with state procurement and R&D norms
- Submission of technical DPR & financial model
Funding Pattern/Financial Assessment
Every semiconductor project requires a clear financial assessment (CFA). Below is the recommended structure used for bank funding and subsidy-backed semiconductor projects in UP.
Financial Assessment Table
Component | Minimum | Maximum | Description |
Promoter Contribution | 20% | 35% | Minimum equity by project promoter; varies by project size & risk profile |
Term Loan (Banks/FIs) | 40% | 60% | Major source of project financing; depends on debt viability |
State Subsidy (UP Semiconductor Policy 2024) | 20% | 50%+ depending on project category | Includes capital subsidy, land rebate value, and interest subsidy benefits |
Central Government Support (if applicable) | 10% | 50%+ | For projects under India Semiconductor Mission (ISM), DLI, SPECS, etc. |
Working Capital | Project-specific | Project-specific | Based on supply chain cycle & operational design |
This structure ensures project viability with:
- Reduced equity burden
- Improved debt service capability
- Strong combined support from state and central subsidies
- Optimized subsidy structuring through Finraja Consultancy
How to Apply for UP Semiconductor Subsidy 2024 With Finraja Consultancy
Semiconductor applications require deep technical, financial, and compliance expertise. Doing it alone or through non-experts can lead to:
- Rejection
- Delayed approvals
- Loss of eligibility
- Lower subsidy allocation
Therefore, the correct application method is:
- Investment structuring
- Eligibility validation
- Semiconductor-specific DPR creation
- Financial modelling
- Incentive mapping (capital, land, interest)
- State department coordination
- Application drafting
- Documentation checklist & filing
- Follow-ups until approval
With high-value projects like fab, ATMP/OSAT, or component manufacturing, professional handling by Finraja is ensured.
Why Choose Uttar Pradesh for Semiconductor Manufacturing?
Uttar Pradesh is emerging as a top semiconductor destination due to:
- Mega investment incentives
- Large land availability
- Logistic advantages
- Growing electronics ecosystem
- Skilled manpower pool
- Lower operating cost compared to other states
These factors increase the feasibility of semiconductor manufacturing in Uttar Pradesh, making it an ideal state for both domestic and global investors.
Conclusion
The UP Semiconductor Subsidy 2024 presents a powerful opportunity for companies planning semiconductor fabs, ATMP/OSAT units, or component manufacturing plants. With major incentives such as
- Capital subsidy
- Land rebate
- Interest subsidy
- ATMP/OSAT special incentives
- Infrastructure support
UP positions itself as a highly competitive semiconductor destination.
However, due to the technical nature of the subsidy process, investors require professional consultancy to secure approvals efficiently.
Call us now: +91 9373114747 or visit finraja.com/contact for quick assistance.
