One of the most outstanding figures in the Indian business environment, Darshan Hiranandani, plans to initiate a transformative project that could make Uttar Pradesh a global semiconductor industry player. Tarq Semiconductors Private Limited, owned by Hiranandani Group, has recently applied to the central government under the Indian Semiconductor Mission Scheme to create assembly, testing, and packaging (ATP) plants for semiconductors in the state. This enterprising investment project is projected to have immense economic benefits for the area and boost India's place in the global semiconductor supply chain.
The Strategic Importance of the Project
Semiconductors are integral to modern technology, including smartphones, computers, automobiles, and industrial machinery. The importance of semiconductor manufacturing was underscored by the COVID-19 pandemic, which caused global supply chain disruptions and resulted in shortages across various sectors. To be self-reliant in this sector, the Government of India introduced the Indian Semiconductor Mission, aimed at promoting domestic production of semiconductors and reducing reliance on foreign suppliers.
Hiranandani Group's Tarq Semiconductors quickly seized upon this undertaking. The company took its initial step into setting up an ultra-modern semiconductor ATP facility within Uttar Pradesh by applying under the Indian Semiconductor Mission scheme. This plan will set aside 91 acres in the Sector 28 Yamuna Expressway Industrial Development Authority (YEIDA) region, which is an ideal location to create a hub for semiconductor manufacturing envisaged by the government.
Phased Development and Job Creation
Tarq Semiconductors' Memorandum of Understanding (MoU) with the government provides a road map outlining different stages towards the full realization of this project. Phase one entails the construction and commissioning of ATP Plant 1, majoring on legacy semiconductor technologies. It is expected to be completed within 24 months and involves over Rs 2,500 crore in investment. The subsequent phases will see the coming up of ATP Plants 2 and 3 to accommodate mature and complex semiconductor technologies, respectively, over a period of the following 24 months.
The project is poised to create significant employment opportunities in the region, generating an estimated 1,000 jobs in the first phase alone. This inflow of jobs will provide direct employment and result in indirect employment, stimulating other industries and boosting the local economy even further. Also, it supports the government's 'Make in India' initiative aimed at domestic manufacturing and reducing the country's reliance on imports.
Darshan Hiranandani's Commitment to Uttar Pradesh
Hiranandani Group has proved its commitment to Uttar Pradesh through various ongoing projects. For instance, Hiranandani Group's subsidiary, Yotta Data Services Pvt. Ltd., is a successful Uttar Pradesh operation that contributes to the state's digital infrastructure development. The decision to pilot the semiconductor division project in Uttar Pradesh shows Hiranandani's confidence that such a centre could emerge as a significant industrial hub.
In his letter addressed to YEIDA, Hiranandani stressed their intention to increase their foothold within UP due to the state's strategic location, the availability of skilled labor, and favorable government policies, which were some of the key factors that affected this decision. Thus, the semiconductor project represents a vital step forward in the expansion plan, potentially positioning UP as the Indian leader in semiconductor manufacturing.
The business by Darshan Hiranandani's Tarq Semiconductors of a projected semiconductor ATP centre present an essential achievement on India's journey toward self-dependency in semiconductor fabrication. This project, through heavy capital investments, phased development, and job creation commitments, is capable of converting Uttar Pradesh into an essential participant in the global foundry supply chain.
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