The Union Cabinet on Tuesday approved two new semiconductor manufacturing projects under the India Semiconductor Mission (ISM). This includes the country’s first commercial Mini/Micro-LED display facility based on gallium nitride (GaN) technology, Information and Broadcasting Minister Ashwini Vaishnaw said after the meeting.
Briefing reporters, Vaishnaw said the projects, to be set up in Gujarat with a combined investment of around Rs 3,936 crore, are expected to generate employment for about 2,230 skilled professionals. “These approvals mark another important step in strengthening India’s semiconductor ecosystem and advancing into next-generation display technologies,” he said.
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One of the projects will be established by Crystal Matrix Limited in Dholera as an integrated facility for compound semiconductor fabrication along with assembly, testing, marking and packaging (ATMP). The unit will manufacture Mini and Micro-LED display modules and provide GaN foundry services, including epitaxy on six-inch wafers. It is expected to produce 72,000 square metres of display panels annually along with 24,000 sets of RGB wafers. These will cater to applications ranging from televisions and commercial signage to smartphones, in-car displays, extended reality devices and smartwatches.
The second project will be set up by Suchi Semicon Private Limited in Surat as an Outsourced Semiconductor Assembly and Test (OSAT) facility focused on discrete semiconductors. The unit is projected to manufacture over 1,033 million chips annually for use in power electronics, analog integrated circuits, industrial systems, automotive applications, industrial automation and consumer electronics.
With these approvals, the total number of projects sanctioned under the ISM has risen to 12, with cumulative investments reaching around Rs 1.64 lakh crore. Officials said the new units will complement India’s expanding chip design ecosystem, supported by government-backed infrastructure across 315 academic institutions and 104 start-ups.
The push comes as India looks to strengthen its position in the global electronics supply chain amid rising demand for advanced semiconductors and evolving geopolitical dynamics. Officials noted that momentum in the sector is building, with ten previously approved projects at different stages of execution, two already commencing commercial shipments and two more expected to begin operations soon.
The government said the latest approvals will bolster domestic manufacturing capacity, reduce reliance on imports, and accelerate India’s transition into advanced semiconductor and display technologies.