India Approves Two New Semiconductor Units Worth Rs 3,900 Crore

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved two new semiconductor manufacturing projects under the India Semiconductor Mission. These projects involve a total investment of more than Rs 3,900 crore and mark another step forward in India’s push to become a global semiconductor hub.

Both projects will be set up in Gujarat with a combined investment of around Rs 3,936 crore. They are expected to generate employment for about 2,230 skilled professionals. This move strengthens India’s semiconductor ecosystem and supports long-term growth in electronics manufacturing.

The first project will be developed by Crystal Matrix Limited in Dholera, Gujarat. It will be an integrated facility for compound semiconductor fabrication and assembly, testing, marking, and packaging. The plant will focus on manufacturing Mini and Micro LED display modules using Gallium Nitride technology.

This facility will also offer GaN foundry services, including epitaxy on 6-inch wafers. It is expected to produce 72,000 square meters of Mini and Micro LED display panels every year. Additionally, it will manufacture 24,000 sets of RGB wafers annually. These products will be used in televisions, commercial displays, smartphones, tablets, in-car displays, smartwatches, and extended reality devices.

The second project will be set up by Suchi Semicon Private Limited in Surat, Gujarat. It will be an Outsourced Semiconductor Assembly and Test facility focused on producing discrete semiconductors. The unit will have an annual production capacity of over 1,033 million chips.

Suchi Semicon’s products will mainly serve industries like automotive, industrial automation, and consumer electronics. These chips will be used in power electronics, analog integrated circuits, and other industrial systems, helping strengthen India’s manufacturing capabilities.

With these two new approvals, the total number of semiconductor projects under the India Semiconductor Mission has reached 12. The combined investment across these projects is now around Rs 1.64 lakh crore, showing strong momentum in the sector.

The government is also supporting semiconductor design development in India. Currently, 315 academic institutions and 104 startups are receiving infrastructure support to build advanced chip design capabilities.

India’s semiconductor ecosystem is growing steadily, with ten previously approved projects already in different stages of execution. Two of these projects have started commercial shipments, while two more are expected to begin production soon. This continued progress reflects India’s commitment to becoming a key player in the global semiconductor industry.