Cabinet Clears 2 New Semiconductor Units Worth ₹3,900 Crore to Boost India’s Chip Ecosystem

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved two new semiconductor manufacturing projects under the India Semiconductor Mission, further accelerating the country’s push to strengthen its domestic chip ecosystem.

The projects, with a combined investment of approximately ₹3,936 crore, will be set up in Gujarat and are expected to generate over 2,200 skilled jobs.

One of the approved proposals comes from Crystal Matrix Limited, which will establish an integrated compound semiconductor fabrication and assembly facility in Dholera. The unit will focus on manufacturing Mini and Micro-LED display modules using Gallium Nitride (GaN) technology, marking India’s first commercial-scale facility in this segment. The plant will also offer GaN foundry services and produce wafers used in applications ranging from televisions and smartphones to extended reality (XR) devices and smart wearables.

The second project, led by Suchi Semicon, involves setting up an Outsourced Semiconductor Assembly and Test (OSAT) facility in Surat. The unit is expected to manufacture over one billion chips annually, serving sectors such as automotive, industrial automation, and consumer electronics.

With these approvals, the total number of semiconductor projects cleared under the India Semiconductor Mission has risen to 12, with cumulative investments reaching approximately ₹1.64 lakh crore. The government said the new facilities will complement India’s growing chip design ecosystem, supported by infrastructure initiatives across more than 300 academic institutions and over 100 startups.

The latest approvals come as momentum builds across the sector, with several previously sanctioned projects already in advanced stages of execution. Two facilities have commenced commercial shipments, while additional units are expected to become operational in the near term, signalling steady progress in India’s ambition to become a global semiconductor manufacturing hub.

Launched in 2022, the India Semiconductor Mission (ISM 1.0) has significantly accelerated the country’s semiconductor ambitions, with 10 projects approved so far, attracting a total investment of around ₹1.65 lakh crore.

Two units—Micron Technology and Kaynes Technology—have already commenced commercial production, while two more are expected to go live in 2026. Construction across multiple facilities is progressing rapidly, reflecting strong execution momentum. At the same time, India’s design ecosystem is expanding, with over 67,000 engineers and chip designers across 421 academic institutions and startups actively leveraging advanced Electronic Design Automation (EDA) tools.