THEBUSINESSBYTES
BUREAU
NEW
DELHI, MAY 5, 2026
In a significant
stride toward strengthening India’s semiconductor ecosystem, the Union Cabinet
chaired by Prime Minister Narendra Modi on Tuesday approved two new
semiconductor manufacturing projects under the India Semiconductor Mission,
entailing a combined investment of over ₹3,900 crore and promising substantial
employment generation.
The two projects — India’s
first commercial Mini/Micro-LED display facility based on Gallium Nitride (GaN)
technology and a semiconductor packaging unit — will be established in Gujarat
with a total outlay of approximately ₹3,936 crore. Together, they are expected to create
employment opportunities for around 2,230 skilled professionals, further
reinforcing the country’s ambition to emerge as a global semiconductor hub.
Among the approved
proposals, Crystal Matrix Limited will set up a state-of-the-art integrated
facility at Dholera for compound semiconductor fabrication and Assembly,
Testing, Marking, and Packaging (ATMP). The facility will manufacture advanced
Mini/Micro-LED display modules and offer GaN foundry services, including
epitaxy on 6-inch wafers. With an annual production capacity of 72,000 square
meters of display panels and 24,000 sets of RGB epitaxy wafers, the plant is
poised to cater to a wide spectrum of applications—from large commercial
displays and televisions to smartphones, automotive displays, XR devices, and
smart wearables.
In a parallel
development, Suchi Semicon Private Limited will establish an Outsourced
Semiconductor Assembly and Test (OSAT) facility in Surat. This unit will focus
on manufacturing discrete semiconductors with a robust annual capacity of over
1,033 million chips. The products will serve critical sectors such as power
electronics, analog integrated circuits, automotive systems, industrial
automation, and consumer electronics, underscoring the project’s strategic
importance.
With these latest
approvals, the total number of projects sanctioned under the India
Semiconductor Mission has risen to 12, attracting cumulative investments of
around ₹1.64 lakh crore. This expansion
is expected to significantly bolster domestic manufacturing capabilities and
reduce dependence on imports.
The government’s sustained push is also complemented by a growing ecosystem of chip design and innovation. Design infrastructure support has already been extended to 315 academic institutions and 104 start-ups, fostering a new wave of indigenous technological development.
Adding to the momentum, ten previously approved semiconductor projects are already at various stages of implementation. Notably, two projects have commenced commercial shipments, while two more are on the verge of going operational, signalling rapid progress in India’s semiconductor journey.
