India’s semiconductor ecosystem has received a major boost with Cabinet approval for two new units in Gujarat, worth ₹3,936 crore, expected to generate employment for 2,230 skilled professionals.

These projects include the country’s first commercial mini/micro-LED display facility based on GaN technology and a discrete semiconductor packaging unit, marking the 12th set of approvals under the India Semiconductor Mission.

The Union Cabinet, chaired by Prime Minister Narendra Modi, has cleared two semiconductor manufacturing projects under the India Semiconductor Mission (ISM).

Information and Broadcasting Minister Ashwini Vaishnaw announced that the approvals include India’s first commercial mini/micro-LED display facility based on Gallium Nitride (GaN) technology and a semiconductor packaging facility.

Both facilities will be established in Gujarat with a cumulative investment of ₹3,936 crore and are expected to generate employment for 2,230 skilled professionals.

Crystal Matrix Limited (CML) will set up an integrated facility for compound semiconductor fabrication and ATMP (Assembly, Testing, Marking, and Packaging) in Dholera, Gujarat. This facility will manufacture mini/micro-LED display modules and also provide GaN foundry services, including epitaxy on six-inch wafers.

The annual production capacity is projected at 72,000 square metres of display panels and 24,000 sets of RGB epitaxy wafers. These products will cater to large displays such as televisions and commercial signage, medium-sized displays for tablets, smartphones, and in-car systems, as well as micro-displays for extended reality devices and smartwatches.

Suchi Semicon Private Limited (SSPL) will establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in Surat, Gujarat. This unit will focus on manufacturing discrete semiconductors with an annual production capacity of over 1,033 million chips.

The chips will serve applications in power electronics, analogue integrated circuits, industrial systems, automotive, industrial automation, and consumer electronics. The OSAT facility will also produce lead frame and wire-bond packaging semiconductors, with capacities including 673 million units per year for Small Outline Integrated Circuits (SOIC) and 263 million units per year for Transistor Outline (TO) packages.

With these approvals, the total number of projects sanctioned under the India Semiconductor Mission has reached 12, with cumulative investments of about ₹1.64 lakh crore.

Officials highlighted that these facilities will complement India’s growing chip design capabilities, supported by government-backed infrastructure across 315 academic institutions and 104 start-ups.

The momentum in the sector is accelerating, with ten previously approved projects at various stages of implementation, two already commencing commercial shipments, and two more expected to begin operations soon.

The semiconductor push comes at a time when global supply chains are shifting due to geopolitical dynamics and rising demand for advanced chips. India’s strategy aims to position itself as a key player in the international electronics supply chain, reducing import dependence and strengthening domestic manufacturing.

The new facilities in Gujarat are expected to catalyse regional development, generate high-skilled employment, and foster collaboration between industry, academia, and government institutions.

PTI