Six Reasons Why Noida-Greater Noida Region Is Set To Emerge As India’s Semiconductor Hub

May this year marked a double milestone for Noida, a moment of pride and promise. As the city celebrated 50 years since its formation, it also welcomed its very first semiconductor unit, signalling a bold leap into India’s high-tech future.

Born in 1976 during the Emergency as part of India’s push for industrialisation, Noida has grown into a nerve centre for electronics and technology. Together with Greater Noida and the Yamuna Expressway Industrial Development Area (YEIDA), the region, officially the Gautam Buddha Nagar district, now hosts more than 15,000 industrial units. But the recent greenlight to set up a semiconductor assembly plant may prove to be its most consequential turning point yet.

So, what exactly makes Noida and Greater Noida such a compelling destination for semiconductor investments? Here are six reasons why the region is fast emerging as India’s next silicon stronghold:

Access to adequate transportation infrastructure for supply of raw materials and shipping of finished goods is a key necessity for semiconductor fabrication units. Noida and Greater Noida score high here, thanks to excellent road networks and upcoming world-class air connectivity.

The 165.5 km-long Yamuna Expressway forms the spine of the region’s industrial corridor, seamlessly connecting Noida to Agra and cutting transit time for goods. Complementing it is the 135 km-long Eastern Peripheral Expressway (EPE), a six-lane corridor linking Kundli to Palwal in Haryana via Ghaziabad and Greater Noida, ensuring swift transit across key industrial zones.

The real catalyst, however, is the upcoming Noida International Airport (NIA) at Jewar. Slated to go live by the end of 2025, it is designed to be a major global air-cargo and passenger hub and will be a catalyst for global semiconductor firms eyeing India’s booming electronics sector. It will position the region as a critical node for both imports and exports.

In its first year, the airport is projected to handle 5 million passengers. With one terminal and a single runway in Phase 1, it will have the capacity to serve 12 million passengers annually. By the time all four phases are completed, the airport will be capable of handling 70 million passengers each year, making it one of the largest airports in the region.

Further enhancing connectivity, there are plans to link Noida International Airport directly with Delhi’s Indira Gandhi International Airport (IGI). A parliamentary panel has recommended integrating both airports through the Regional Rapid Transit System (RRTS), a move that would streamline logistics and boost inter-airport connectivity, crucial for high-value industries like semiconductors.

2. Industrial-Grade Readiness, From Power to Plots

Behind Noida’s rise is a trinity of reliable utilities: 24x7 power, high-quality water, and shovel-ready land. Semiconductor fabrication demands uninterrupted power and large volumes of ultra-pure water, needs the region is actively addressing.

As part of this, the Yamuna Expressway Industrial Development Authority (YEIDA) has developed over 5,000 acres of industrial land, specifically designated for high-tech industries such as electronics and semiconductor manufacturing. These ready-to-use industrial plots are not only available but come with infrastructural support, including electricity, water supply, and sewage management, making it easier for companies to set up operations without delays.

Additionally, the Authority has identified 1,000 acres of land next to Jewar airport dedicated to semiconductor manufacturing units.

In the Noida and Greater Noida region, several initiatives are underway to guarantee a consistent and sustainable water supply to support upcoming industrial units. A regulator has been constructed at the Dayanatpur Distributary to facilitate controlled water flow to the region.

To further strengthen year-round availability, two rainy wells, each with a capacity of 8 million litres per day (MLD), have been proposed. These wells are designed to ensure a 24/7 water supply, 365 days a year, creating a resilient infrastructure backbone for high-tech industries like semiconductors.

3. Policy Firepower, Double Engines at Work

What is powering India’s semiconductor surge is a potent mix of national and state-level support. At the heart of this momentum lies the Government of India’s $10 billion incentive scheme under the India Semiconductor Mission (ISM), which provides attractive fiscal incentives across the value chain.

The mission provides 50 per cent of the project cost for setting up semiconductor fabs across all technology nodes, along with similar support for manufacturing display panels, including TFT, LCD, and AMOLED technologies.

One of the earliest beneficiaries of this policy push is the HCL-Foxconn OSAT joint venture near the Jewar Airport in the YEIDA region. As the first semiconductor plant in Uttar Pradesh under ISM, it marks a major milestone, not just for the state, but for India’s broader effort to localise high-value chipmaking capabilities. It also strengthens the case for Noida and Greater Noida, both of which already house a robust ecosystem for electronics design and manufacturing.

On top of this, Uttar Pradesh has launched one of the country’s most attractive state policies for the sector. The UP-Semiconductor Policy 2024 offers up to 50 per cent capital subsidy, 75 per cent land discount, and full stamp duty waivers. While these benefits apply statewide, Noida and Greater Noida, with their existing infrastructure, are perfectly placed to maximise the advantage.

Together, these central and state policies form a powerful double engine, making semiconductor investments not only viable but strategic in this region.

4. Labour and Workforce

“India has semiconductor human power,” says Pranay Kotasthane of the Takshashila Institution. “Semiconductor design [or production] requires large numbers of skilled engineers, and this is where India’s strength lies.” And Noida and Greater Noida sit at the heart of this intellectual goldmine.

The twin cities of Noida and Greater Noida are rapidly growing into higher education powerhouses. Greater Noida’s Knowledge Park is home to over 50 colleges, and the district hosts seven universities, the government-run Gautam Buddha University (GBU) and six other private universities, including Sharda, Galgotias, Amity and Noida International University (NIU).

Still, the talent pipeline has its gaps. Only about 1 per cent of engineering graduates, roughly 6,000 students annually, are considered “industry-ready” upon graduation, capable of operating on the factory floor within three months. Most need a year or two of on-the-job training. That is where the Uttar Pradesh Semiconductor Policy steps in.

The policy offers up to Rs 3 crore in skilling support over five years, including Rs 60 lakh annually for faculty training, workshops, and expert talks. It also funds internships for 500 students per year, with Rs 20,000 support per intern, and offers Rs 1 crore per unit to help companies hire world-class talent.

Together, these measures are closing the skills gap, turning Noida and Greater Noida into a compelling destination for semiconductor investment and innovation.

5. A Thriving Electronics Ecosystem Already in Place

Semiconductor fabs do not operate in isolation, they thrive in places with strong existing electronics value chains. Uttar Pradesh already dominates India’s ESDM (Electronics System Design and Manufacturing) landscape.

With the highest share of exports in these segments and a workforce of over 350,000 professionals, the state is well poised to attract large-scale investments from global technology and manufacturing giants, particularly in the fast-growing electronics and semiconductor domains.

Over 200 ESDM and IT companies currently operate in the state, including global heavyweights like Samsung, Oppo, Haier, NTT, STT Global, Web Werks, HCL Technologies, TCS, Infosys, Wipro, Adobe, and Microsoft. Noida stands out as a nucleus of this industrial activity, boasting a thriving electronics manufacturing ecosystem. It hosts mobile phone assembly units, consumer electronics plants, and a strong network of component suppliers producing PCBs, connectors, and integrated circuits.

This ready-made infrastructure is critical for semiconductor manufacturing, particularly for OSAT (Outsourced Semiconductor Assembly and Test) operations. The region’s appeal is further enhanced by dedicated zones such as a 250-acre Electronic Park, a Data Centre Park, and multiple Electronics Manufacturing Clusters (EMCs) developed within the YEIDA region near the upcoming Jewar airport.

This pre-existing backbone sharply reduces the time-to-market for semiconductor players, adding to the region’s long-term appeal.

6. HCL–Foxconn OSAT Plant: A Game-Changer in Motion

The clearest sign that Noida’s semiconductor journey is no longer a dream came in May this year, when the Union Cabinet approved a ₹3,706 crore joint venture between HCL and Taiwan-based Foxconn, the world’s largest contract electronics manufacturer.

The project will establish an OSAT facility near Jewar Airport, in the YEIDA region of Uttar Pradesh. This facility will produce display driver chips used in mobile phones, laptops, automobiles, and other display-enabled devices. With a monthly capacity of 20,000 wafers, it promises to significantly strengthen India’s domestic supply of advanced semiconductor components.

Foxconn, founded in 1974 in Taiwan, is the world’s largest electronics manufacturer and a global leader in tech solutions. Its decision to set up shop in Noida underscores the region’s strategic appeal, driven by robust infrastructure, proximity to the upcoming international airport, and proactive policy support from both the state and central governments.

The Road Ahead

The Uttar Pradesh government is eyeing a significant share of investments in semiconductor manufacturing, especially after Prime Minister Narendra Modi made a compelling case for India’s chip-making potential while inaugurating Semicon India 2024 at the India Expo Mart in Greater Noida last September. With the right policy push and infrastructure momentum, the twin cities of Noida and Greater Noida could well emerge as India’s next Silicon Valley.