The announcement was made by Union Minister for Electronics and IT Ashwini Vaishnaw at a press conference held at SEMICON India. Uttar Pradesh will now host semiconductor operations in addition to Gujarat and Assam.

Furthermore, Yogi Adityanath, the Chief Minister of Uttar Pradesh, stated that the state is prepared to provide a capital subsidy of up to 25% to businesses wishing to establish semiconductor fabs in the state.

This subsidy will supplement the central government's 50% capital assistance for semiconductor units, potentially raising the overall capital subsidies to 75% for these units. "We want to support the ecosystem even more by expanding our focus to include specialized materials with Phase 2.0."

On two of the authorized semiconductor units, construction has already begun, and on three more, work is soon to begin. Phase 2.0 of the program will launch with an enlarged version and comprehensive discussions to identify the next steps for state assistance. Phase 2.0 is anticipated to launch in the next three to four months.

Additionally, Vaishnaw stated that a number of encouraging suggestions are being examined and would shortly be submitted for approval to the Cabinet. To strengthen India's standing in the worldwide semiconductor industry, the government continues to place a strong focus on developing a whole semiconductor ecosystem, which includes specialized materials.