The move expands India’s chip manufacturing footprint with new display and OSAT facilities, supporting high-growth sectors like EVs and electronics while advancing the country’s long-term strategy for supply chain resilience and innovation.
The Union Cabinet has approved two new semiconductor projects in Gujarat under the India Semiconductor Mission, aiming to expand chip manufacturing capacity, generate skilled jobs, and strengthen India’s position in global electronics supply chains.
In a significant move to strengthen India’s semiconductor ambitions, the Union Cabinet led by Narendra Modi has approved two new chip manufacturing projects with a combined investment exceeding ₹3,900 crore. The projects, sanctioned under the India Semiconductor Mission, will be established in Gujarat and are expected to generate employment for over 2,200 skilled professionals.
With these additions, the total number of approved semiconductor projects in the country has risen to 12, taking cumulative investments in the sector to approximately ₹1.64 lakh crore. The move reflects the government’s continued focus on building a resilient and self-reliant semiconductor ecosystem amid rising global demand for advanced electronics.
New facilities to focus on display and chip packaging
One of the approved projects will be developed by Crystal Matrix Limited in Dholera. This facility will serve as an integrated compound semiconductor fabrication and assembly unit, focusing on the production of Mini and Micro-LED display modules using Gallium Nitride (GaN) technology. It is expected to be India’s first commercial-scale manufacturing unit in this specialized segment.
The second project, proposed by Suchi Semicon Private Limited, involves setting up an Outsourced Semiconductor Assembly and Test (OSAT) facility in Surat. The unit will produce discrete semiconductor components with an annual capacity exceeding 1,000 million chips. These components will cater to a wide range of sectors, including automotive systems, power electronics, industrial automation, and consumer devices—industries witnessing rapid expansion due to digitisation and electrification trends.
Growing momentum in India’s semiconductor push
The approvals come as India accelerates efforts to build a comprehensive semiconductor value chain, spanning design, fabrication, and packaging. Several previously cleared projects are already progressing, with some units having begun commercial production and others nearing operational readiness.
In parallel, the government is investing in semiconductor design capabilities by supporting more than 300 academic institutions and over 100 startups. This dual approach—combining manufacturing infrastructure with design innovation—is aimed at creating a sustainable ecosystem that can compete globally.
The inclusion of compound semiconductor fabrication and OSAT capabilities is expected to reduce India’s dependence on imports while enhancing its integration into global supply networks. As demand for electronics, electric vehicles, and advanced computing technologies continues to rise, these projects are likely to play a pivotal role in positioning India as a key hub for next-generation semiconductor manufacturing, while also driving innovation and high-value job creation.
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