India’s Semiconductor Push Gains Momentum: Cabinet Greenlights Two New Units With ₹3,936 Crore Investment
Projects in Gujarat to Boost Compound Semiconductor and Packaging Capabilities; Expected to Create Over 2,200 Skilled Jobs
New Delhi: In a significant boost to India’s ambition of becoming a global semiconductor hub, the Union Cabinet on Tuesday approved two new semiconductor manufacturing projects under the India Semiconductor Mission (ISM) with a cumulative investment of approximately ₹3,936 crore. These are the final two projects under ISM 1.0, taking the total number of approved semiconductor initiatives to 12.
The projects, to be established in Gujarat, include the country’s first commercial Mini/Micro-LED display facility based on Gallium Nitride (GaN) technology and a state-of-the-art semiconductor packaging unit. Information and Broadcasting Minister Ashwini Vaishnaw briefed the media after the Cabinet meeting, highlighting that the facilities will significantly strengthen India’s compound semiconductor ecosystem and reduce dependence on imports for critical electronics components.
Project Details
Crystal Matrix Limited (CML) will set up an integrated facility for compound semiconductor fabrication and ATMP (Assembly, Testing, Marking, and Packaging) in Dholera, Gujarat. This unit will focus on manufacturing advanced Mini and Micro-LED display modules, which are vital for high-end consumer electronics, automotive displays, and energy-efficient lighting solutions.
The second project, by Suchi Semicon Private Limited, will establish a semiconductor packaging facility. Together, the two units are expected to generate over 2,230 skilled jobs and attract further ecosystem investments in the region.
Strategic Importance
This approval comes at a time when global supply chains are seeking alternatives to traditional manufacturing destinations. India’s semiconductor strategy, backed by an incentive package of over ₹76,000 crore under the Semicon India Programme, aims to build a robust domestic ecosystem covering wafer fabrication, advanced packaging, and compound semiconductors.
With these approvals, total investment commitments under ISM now exceed significant milestones. Earlier projects, including those by Micron, Tata Electronics, and others, have already begun pilot production or are in advanced stages of implementation across states like Gujarat, Uttar Pradesh, and Odisha.
Experts believe these new units will play a crucial role in supporting key sectors such as 5G/6G communications, electric vehicles, defence electronics, and consumer appliances. The GaN-based technology, in particular, offers superior performance in high-power and high-frequency applications, making it strategic for both commercial and strategic needs.
Government’s Vision
Prime Minister Narendra Modi’s government has consistently emphasised self-reliance in critical technologies. The India Semiconductor Mission, launched to position India as a major player in the global semiconductor value chain, has already attracted investments worth over ₹1.6 lakh crore across various projects.
Union Minister Ashwini Vaishnaw noted that these projects reflect the maturing of India’s semiconductor policy framework, which provides up to 50% fiscal support on a pari-passu basis along with state government incentives.
Challenges and the Road Ahead
While the momentum is strong, challenges remain. These include building a skilled workforce, ensuring reliable power and water supply, developing a component ecosystem, and navigating global geopolitical tensions in semiconductor trade. The government is working on ISM 2.0 to address these gaps and attract more large-scale fabs.
Industry bodies have welcomed the move, stating it will encourage more international players to consider India as a manufacturing destination. With these two new units, India is steadily progressing towards its target of establishing a comprehensive semiconductor ecosystem by the end of the decade.
This latest approval not only strengthens economic resilience but also enhances national security by reducing reliance on imported chips. As global demand for semiconductors continues to surge, India is positioning itself as a reliable and competitive alternative in the international arena.
The successful implementation of these projects will be closely watched by investors and technology firms worldwide.
