Top 5 Indian States Offering Land Incentives for Semiconductor Projects in 2025
Explore the top Indian states that are leading the way in offering land and financial incentives for semiconductor projects, including detailed policies and recent developments.
SemiconductorIncentivesLandManufacturingIndiaReal EstateNov 09, 2025
1. Uttar Pradesh
Uttar Pradesh has positioned itself as a front-runner with its Semiconductor Policy 2024, offering some of the most aggressive land subsidies in the country. The state accounts for 45% of India’s smartphone manufacturing and 55% of mobile components. Key global brands like Samsung, Oppo, Vivo, Dixon Technologies, Sunwoda, and Haier have significant operations here.
Samsung has opened its largest mobile manufacturing plant in Noida. Additionally, UP is partnering with HCL Group and Foxconn to develop a plant at Jewar, expected to begin production in 2027.
Land and Financial Incentives
- Land Subsidy: 75% on the first 200 acres from state land agencies, 30% on additional land.
- Stamp Duty and Registration Fees: 100% exemption.
- Interest Subsidy: 5% per annum for 7 years.
- GST Reimbursement: 100% for 6-16 years.
2. Gujarat
Gujarat was the first Indian state to implement a dedicated semiconductor policy and already hosts a functioning semiconductor facility in Dholera. Dholera spans 920 square kilometers and is planned as a greenfield industrial city.
Approved Projects and Capacity
| Project | Investment | Capacity | Status |
|---------|------------|----------|--------|
| Tata Electronic Fab (Dholera) | ₹91,000 crore | 50,000 wafers/month | Under construction; targeting late-2026 for first chips |
| Micron ATMP (Sanand) | $2.75 billion | Advanced Packaging/test (15,000 jobs) | 60% construction complete; operational/ near operational by H1 2025 |
Land & Financial Incentives
- Land Subsidy: 75% on the first 200 acres in Dholera.
- Stamp Duty and Registration Fees: 100% one-time refund.
- Central Government Support: 40% additional subsidy.
- Electricity Subsidy: ₹2 per unit for 10 years.
3. Odisha
Bhubaneswar, the capital city of Odisha, has been designated as a semiconductor hub with projects concentrated in Info Valley near IIT Bhubaneswar. The semiconductor and ESDM (Electronic System Design and Manufacturing) park will span 200 acres adjacent to the IIT Bhubaneswar campus.
Approved Projects & Technology Focus
| Project | Company | Investment | Capacity | Technology |
|---------|---------|------------|----------|------------|
| SiC Fab – India’s First Commercial | SiCSem Pvt Ltd and UK’s Clas-Sic | ₹2,067 Cr | 60,000 wafers/year with 96 million packaged units | Silicon Carbide for Defense, EVs, rail, data centers |
| 3D Glass Integration | 3D Glass Solution Inc | ₹2,044 Cr | 69,600 glass panel substrates/year + 50M assembled units + 13,200 3DHI modules | 3D heterogeneous integration for AI, RF, photonics, co-packaged optics |
SiC semiconductors are crucial for EVs, renewable energy, and high-power applications, offering higher efficiency and reduced vehicle weight.
Land & Financial Incentives
- Discount on IPR Rates: 25% for the first 5 projects (Investment > ₹5000 cr).
- Subsequent Mega Projects: 10% subsidy on the first 200 acres.
- Stamp Duty Exemption: 100% for lease/sale agreements.
- Power Tariff Reimbursement: ₹2 per unit for 10 years.
- Interest Subsidy: 5% per annum for 7 years (₹50 cr cap).
4. Assam
Assam has a strategic location in Jagiroad, Morigaon district, approximately 150km from Guwahati, where the Tata Semiconductor Assembly & Test facility is located.
Approved Project & Employment
| Project | Company | Investment | Capacity |
|---------|---------|------------|----------|
| Tata ATMP | Tata Semiconductor Assembly & Test (TSAT) | ₹27,000 Cr | 48 million chips/day, 60,000 wafers/year equivalent |
The ATMP facility focuses on Assembly, Testing, Marking, and Packaging, targeting EVs, communication, and network infrastructure, as well as defense and aerospace applications.
Land & Financial Incentives
- Stamp Duty Exemption: 100% for lease/sale agreements.
- Capital Expenditure Assistance: 40% additional.
- Power Tariff Subsidy: 50% for 10 years.
- Water Supply: ₹5 per cubic meter for the first 10 years.
- SGST Reimbursement: 100%.
5. Andhra Pradesh
Andhra Pradesh has established itself as a leading exporter gateway for electronics manufacturers in India, with a strategic focus on Electronic Manufacturing Clusters (EMCs) and component production. Key projects include:
- Tripathi Electronic Manufacturing Cluster: Attracted Dixon Technologies and TCL Electronics.
- Orvakal Mega Industrial Park: For Silicon Carbide (SiC) specialty semiconductor manufacturing for advanced applications.
Approved Projects & Capacity
| Project | Company | Location | Investment | Applications |
|---------|---------|----------|------------|-------------|
| Advanced Packaging Unit | ASIP (with South Korea’s APACT) | Tirupati EMC | ₹468 Cr | Mobile phones, set-top boxes, automotive, household electronics |
| Silicon Carbide Fab | Indichip + Japan’s YITOA Micro | Orvakal, Kurnool | ₹14,000 Cr | EVs, renewable energy, high-power applications |
Andhra Pradesh has a dual location strategy, with 5,000 acres within 2 hours of Chennai airport and another 5,000 acres within 2 hours of Bangalore airport.
Land & Financial Incentives
- Earmarked Land: 10,000 acres with infrastructure-ready zones.
- Financial Incentives: 50% additional to projects approved under central schemes.
- Electricity Duty Exemptions: 10 years.
- Power Tariff Reimbursements: Available.
- Assured Water Supply: At project sites.
- Land Cost Incentives and Stamp Duty Concessions: Available.
Conclusion
India is transitioning from a strong position in semiconductor design to becoming a significant player in manufacturing, leveraging government support through subsidies, stamp duty exemptions, GST cuts, and more. By 2030, India is projected to become a $100-110 billion semiconductor market.
Frequently Asked Questions
Which Indian state offers the most aggressive land subsidies for semiconductor projects?
Uttar Pradesh offers some of the most aggressive land subsidies, including a 75% subsidy on the first 200 acres and a 30% subsidy on additional land.
What is the significance of the Dholera project in Gujarat?
The Dholera project in Gujarat is significant as it is part of a planned greenfield industrial city spanning 920 square kilometers and hosts the Tata Electronic Fab, targeting late-2026 for first chips.
What are the key incentives offered by Odisha for semiconductor projects?
Odisha offers a 25% discount on IPR rates for the first 5 projects, 10% subsidy for subsequent mega projects, 100% stamp duty exemption, and a power tariff reimbursement of ₹2 per unit for 10 years.
What is the focus of the Tata ATMP facility in Assam?
The Tata ATMP facility in Assam focuses on Assembly, Testing, Marking, and Packaging, targeting applications in EVs, communication, network infrastructure, defense, and aerospace.
What is the dual location strategy of Andhra Pradesh for semiconductor projects?
Andhra Pradesh has a dual location strategy with 5,000 acres within 2 hours of Chennai airport and another 5,000 acres within 2 hours of Bangalore airport, ensuring strategic access to both electronic supplier bases and IT hubs.
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