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The Union Cabinet has approved two semiconductor manufacturing projects in Gujarat under the India Semiconductor Mission, with a combined investment of around INR 3,936 crore. The projects include a Mini/Micro-LED display manufacturing facility and a semiconductor packaging unit, expected to generate over 2,200 jobs. With these approvals, the total number of semiconductor projects in India has increased to 12, attracting investments of about INR 1.64 lakh crore. The move is aimed at strengthening India’s semiconductor ecosystem and supporting growing demand across sectors such as electronics, automotive, and industrial systems.
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved two semiconductor manufacturing projects under the India Semiconductor Mission, further strengthening India’s push to build a domestic chip ecosystem. The approved projects will be set up in Gujarat with a combined investment of around INR 3,936 crore and are expected to generate employment for about 2,230 skilled professionals. Advertisement
One of the projects involves Crystal Matrix Limited, which will establish an integrated facility in Dholera for compound semiconductor fabrication and assembly. The facility will focus on manufacturing Mini/Micro-LED display modules and will also provide Gallium Nitride (GaN) foundry services, including epitaxy on 6-inch wafers. The proposed annual production capacity includes 72,000 square metres of display panels and 24,000 sets of RGB wafers. These products are expected to be used in televisions, smartphones, automotive displays, and extended reality devices.
The second project will be developed by Suchi Semicon Private Limited, which plans to set up an Outsourced Semiconductor Assembly and Test (OSAT) facility in Surat. This unit will manufacture discrete semiconductors with an estimated production capacity of over 1,033 million chips annually. The chips will cater to sectors such as power electronics, industrial automation, automotive applications, and consumer electronics.
Following these approvals, the total number of projects sanctioned under the India Semiconductor Mission has reached 12, with cumulative investments of around INR 1.64 lakh crore. The government indicated that these developments will complement India’s growing chip design capabilities, supported by infrastructure extended to over 300 academic institutions and more than 100 startups.
The government further noted that momentum in the semiconductor sector is increasing, with several approved projects already in execution stages. Some units have begun commercial shipments, while others are expected to start operations soon. This reflects a broader effort to reduce import dependence and position India as a key player in the global semiconductor supply chain.
India’s semiconductor push has gained pace over the past few years as part of a larger strategy to strengthen electronics manufacturing and attract global investments. The sector is seen as critical for emerging technologies, including electric vehicles, telecom, and advanced computing systems.
The approval of these projects highlights continued policy support for semiconductor manufacturing in India. While execution and timelines will be key, the addition of new facilities indicates steady progress in building a domestic ecosystem. The focus on both fabrication and assembly units shows a balanced approach to covering different parts of the value chain. As more projects move towards operational stages, their impact on employment, supply chains, and technology capabilities will become clearer, especially in supporting India’s long-term manufacturing and digital infrastructure goals.
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