UP Government to Launch Third Electronics Manufacturing Cluster in Eastern Region, Eyes AI and IT Expansion
After successfully launching two Electronics Manufacturing Clusters (EMCs) along the Yamuna Expressway and in Greater Noida, the Uttar Pradesh government, under Chief Minister Yogi Adityanath’s leadership, is now preparing to establish a third EMC in the eastern part of the state.
The move is aimed at expanding the state’s electronics and IT footprint beyond the National Capital Region (NCR) and encouraging industries to explore emerging growth corridors across the state.
To attract more investments to eastern Uttar Pradesh, the government plans to introduce new policy measures and offer additional incentives specifically tailored to firms willing to set up operations in that region.
These steps are expected to promote balanced industrial development across the state and create large-scale employment.
New Semiconductor Investment Bolsters EMC Push
A significant boost to the state’s electronics vision came recently when the Central government approved a ₹3,700 crore semiconductor manufacturing unit by Foxconn and HCL.
The facility will be located near Jewar airport in the Yamuna Expressway Industrial Development Authority (YEIDA) zone and will be the first semiconductor plant in Uttar Pradesh.
Speaking to Hindustan Times, the state’s IT and Electronics Minister, Sunil Kumar Sharma, confirmed the government’s roadmap: “Work on EMC 1 is about to commence, and EMC 2 has already been announced in Greater Noida.
Each of these clusters has the potential to generate between 70,000 and 80,000 employment opportunities. We are now moving forward with EMC 3, which will be developed in eastern Uttar Pradesh.”
Incentives and Reforms to Attract Investment Eastward
Acknowledging that most companies prefer to set up base in the NCR due to its existing infrastructure and ecosystem, Sharma emphasized the government’s resolve to shift the focus eastward.
“We are planning to amend our policies to provide stronger incentives for companies that choose to invest in eastern Uttar Pradesh,” he stated.
The 100-acre EMC 1, located in Sector 10 of YEIDA along the Yamuna Expressway, is envisioned as a cutting-edge manufacturing hub. Major brands like Havells have already committed to setting up domestic appliance units there.
Meanwhile, EMC 2 in Greater Noida will span 210 acres and is expected to foster growth in the electronics system design and manufacturing (ESDM) sector.
These clusters are designed to serve as specialized manufacturing zones with state-of-the-art infrastructure, catering to a wide spectrum of electronic segments, including consumer electronics, lighting systems, power electronics, computer hardware, telecom equipment, and their integrated supply chains.
Creating a Business-Friendly Environment
Minister Sharma credited Chief Minister Yogi Adityanath for creating a stable, investment-friendly atmosphere in Uttar Pradesh. “Companies are coming to the state on their own.
This is a testament to the trust they have in our government’s promises and the environment we’ve built—whether it’s law and order, ease of doing business, or the single-window clearance system. All these factors have made UP a preferred investment destination,” he said.
Looking Ahead: AI, Start-ups, and Tech Growth Beyond NCR
The government is also pursuing a larger vision to establish Uttar Pradesh as a leader in electronics production and emerging technologies.
While one semiconductor unit has already been approved, Sharma revealed that a proposal for a second, larger unit worth ₹28,000 crore has been submitted to the Central government and is currently awaiting approval.
Additionally, the government has laid out plans to position the state capital region as a future hub for artificial intelligence (AI). “IBM has recently set up operations in Lucknow, and HCL is expanding there as well,” Sharma said.
“We are also developing start-up hubs in Lucknow and Greater Noida. The proposal has received in-principle approval, and work is underway.”
He acknowledged the saturation in Noida and Greater Noida in terms of industrial space and infrastructure and stressed the need to promote alternative centers like Lucknow and Varanasi.
“Currently, we are focused on transforming Lucknow into a prominent IT and AI hub,” he noted.
Skilling Youth Through AI Pragya Programme
To support the technological evolution of the state, the Uttar Pradesh government has launched the ‘AI Pragya’ programme.
This initiative aims to train 10 lakh individuals from diverse fields by the end of 2025, equipping them with practical AI skills that can be applied in areas like governance, healthcare, education, and agriculture.
Ensuring Fair Distribution of Incentives
Sharma also addressed concerns related to industry incentives. “For the last seven years, very few companies received any incentives.
When I took charge last year, the department’s budget was ₹400 crore, but we released incentives worth ₹408 crore. For the remaining companies with letters of comfort,
I have directed officials to expedite their cases. Our approach is transparent and unbiased—we are supporting all eligible firms.”
Through a combination of strategic policy reforms, targeted incentives, infrastructure development, and workforce training, the Yogi Adityanath-led government is steadily pushing Uttar Pradesh toward becoming a major hub for electronics, semiconductors, and AI-driven innovation in India.
