Cabinet Clears Two New Semiconductor Units Worth ₹3,936 Crore in Gujarat
The Union Cabinet, chaired by Narendra Modi, on Tuesday approved two new semiconductor manufacturing projects under the India Semiconductor Mission (ISM), with a combined investment of ₹3,936 crore. The move is aimed at strengthening India’s position in advanced chip manufacturing, particularly in compound semiconductor technologies.
The projects will be set up in Gujarat and are expected to generate employment for around 2,230 skilled professionals.
First Mini/Micro-LED Facility
One of the approved proposals is from Crystal Matrix Limited (CML), which will establish an integrated compound semiconductor fabrication and assembly facility in Dholera. This will be India’s first commercial Mini/Micro-LED display manufacturing unit based on Gallium Nitride (GaN) technology.
The facility will produce up to 72,000 square metres of Mini/Micro-LED display panels annually, along with 24,000 sets of RGB GaN epitaxy wafers. It will also offer GaN foundry services, including epitaxy on 6-inch wafers.
These products are expected to serve a wide range of applications—from large TV and commercial displays to smartphones, automotive screens, and emerging technologies like extended reality (XR) devices and smartwatches.
OSAT Facility in Surat
The second project, proposed by Suchi Semicon Private Limited (SSPL), involves setting up an Outsourced Semiconductor Assembly and Test (OSAT) facility in Surat.
This unit will manufacture discrete semiconductors with an annual capacity of over 1,033 million chips. The chips will cater to sectors such as automotive, industrial automation, and consumer electronics, including applications in power electronics and analog integrated circuits.
Ecosystem Gains Momentum
With these approvals, the total number of semiconductor projects under ISM has reached 12, with cumulative investments of approximately ₹1.64 lakh crore.
The government said these facilities will complement India’s expanding chip design ecosystem, supported through infrastructure initiatives covering over 315 academic institutions and 104 startups.
