Cabinet clears two semiconductor units worth Rs 3,900 crore under ISM Representative Image
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Cabinet clears two semiconductor units worth Rs 3,900 crore under ISM

The Union Cabinet has approved two semiconductor manufacturing projects with a cumulative investment of over Rs 3,900 crore under the India Semiconductor Mission (ISM)

PSU Watch Bureau

New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved two semiconductor manufacturing projects with a cumulative investment of over Rs 3,900 crore under the India Semiconductor Mission (ISM).

The approved proposals include India’s first commercial Mini/Micro-LED display manufacturing facility based on Gallium Nitride (GaN) technology and a semiconductor packaging unit. Both facilities will be set up in Gujarat and are expected to generate employment for around 2,230 skilled professionals.

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Dholera to host advanced compound semiconductor facility

Under the approvals, Crystal Matrix Limited will establish an integrated facility in Dholera for compound semiconductor fabrication and Assembly, Testing, Marking and Packaging (ATMP).

The plant will manufacture Mini/Micro-LED display modules and offer GaN foundry services, including epitaxy on 6-inch wafers. The facility is designed to produce 72,000 square metres of display panels annually, along with 24,000 sets of RGB GaN epitaxy wafers.

The products will cater to a wide range of applications, including large displays such as televisions and commercial signage, medium-sized displays for smartphones, tablets and automotive systems, and micro-displays for emerging technologies like extended reality (XR) devices and smartwatches.

Surat to get semiconductor packaging and testing unit

In a parallel development, Suchi Semicon Private Limited will set up an Outsourced Semiconductor Assembly and Test (OSAT) facility in Surat.

The unit will focus on manufacturing discrete semiconductors with a proposed production capacity of over 1,033 million chips per annum. These components will find applications in power electronics, analog integrated circuits and industrial systems, catering to sectors such as automotive, industrial automation and consumer electronics.

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India’s semiconductor push gathers pace

With these latest approvals, the total number of sanctioned projects under ISM has reached 12, with cumulative investments of around Rs 1.64 lakh crore.

The government said the new projects will complement India’s expanding chip design ecosystem, supported by infrastructure initiatives benefiting over 315 academic institutions and 104 startups.

The development comes amid growing momentum in the domestic semiconductor sector, with 10 previously approved projects at various stages of implementation. Notably, two projects have already commenced commercial shipments, while two more are expected to begin production soon.

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