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Semiconductor
Indian Cabinet approves two more semiconductor manufacturing units. Photo: Unsplash

India’s chip dream accelerates! Cabinet approves new Rs.3,936 cr semiconductor push

| @indiablooms | May 06, 2026, at 10:30 am

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved two new semiconductor projects under the India Semiconductor Mission. These include the country’s first commercial Mini/Micro-LED display facility based on Gallium Nitride (GaN) technology, along with a semiconductor packaging unit.

Both projects will be set up in Gujarat with a combined investment of approximately ₹3,936 crore and are expected to generate around 2,230 skilled jobs.

With these approvals, the total number of projects under the India Semiconductor Mission rises to 12, with cumulative investments reaching nearly ₹1.64 lakh crore—marking a significant boost to India’s semiconductor ecosystem.

The new facilities will complement the country’s expanding chip design capabilities, supported by government-backed infrastructure extended to 315 academic institutions and 104 startups.

Momentum continues to build, with 10 previously approved projects already at various stages of execution.

According to a government statement, two projects have begun commercial shipments, while two more are expected to start operations soon.

Key Project Details

Crystal Matrix Limited (CML): CML will set up an integrated compound semiconductor fabrication and ATMP (Assembly, Testing, Marking, and Packaging) facility in Dholera, Gujarat. The plant will manufacture Mini/Micro-LED display modules and offer GaN foundry services, including epitaxy on 6-inch wafers.

The facility will have an annual production capacity of:

72,000 sq. metres of Mini/Micro-LED display panels

24,000 sets of Mini/Micro-LED GaN epitaxy RGB wafers

These products will cater to a wide range of applications, including large-format TVs and commercial displays, mid-sized devices like tablets and smartphones, in-car displays, and micro-displays for extended reality (XR) devices and smartwatches.

Suchi Semicon Private Limited (SSPL): SSPL will establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in Surat, Gujarat. The unit will focus on manufacturing discrete semiconductors, with an annual production capacity of 1,033.20 million chips.

The products will serve key sectors such as power electronics, analog integrated circuits, and industrial systems, with applications across automotive, industrial automation, and consumer electronics.

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