The Union Cabinet has approved two new semiconductor manufacturing proposals under the India Semiconductor Mission (ISM), further expanding India’s push to build a domestic chip and advanced electronics ecosystem.
The projects, to be developed in Gujarat, involve a combined investment of nearly ₹3,936 crore and are expected to strengthen the country’s capabilities in semiconductor fabrication, packaging, and advanced display technologies.
The approved projects include a compound semiconductor and display manufacturing facility in Dholera along with a semiconductor assembly and testing unit in Surat.
Together, the two projects are projected to create employment opportunities for more than 2,200 skilled workers.
Crystal Matrix Limited will establish an integrated semiconductor fabrication and packaging facility focused on Mini and Micro-LED display technologies.
The proposed unit will also offer Gallium Nitride (GaN)-based foundry services, an area increasingly gaining importance in next-generation electronics and high-efficiency display applications.
The facility is expected to manufacture display modules used across televisions, commercial screens, smartphones, automotive displays, wearable devices, and extended reality products.
Suchi Semicon Private Limited has received approval to establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in Surat.
The unit will manufacture discrete semiconductor components catering to industries such as automotive, industrial electronics, power systems, and consumer devices.
The project is expected to produce over one billion semiconductor units annually once operational.
With the latest approvals, the number of semiconductor projects cleared under the India Semiconductor Mission has reached 12.
Total committed investments across these projects now stand at around ₹1.64 lakh crore, reflecting the government’s larger strategy to develop an end-to-end semiconductor ecosystem within the country.
Apart from manufacturing investments, the government is also supporting semiconductor design infrastructure through academic institutions and start-ups.
Officials stated that multiple approved projects are already progressing through different stages of implementation, while some facilities have begun commercial shipments.
India has been increasing its focus on semiconductor manufacturing amid rising global demand for chips and supply chain diversification efforts.
The latest approvals are expected to support domestic electronics manufacturing while reducing long-term dependence on imported semiconductor components.
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The approval of two additional semiconductor projects strengthens India’s efforts to build advanced manufacturing capabilities across chip fabrication, packaging, and next-generation display technologies.
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Published on: May 6, 2026, 9:24 AM IST
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