Cabinet Approves Over INR 3,900 Crore Semiconductor Units, Boosts Mini/Micro LED Manufacturing

In a major push to India’s electronics manufacturing ambitions, the Union Cabinet  has approved two semiconductor projects under the India Semiconductor Mission (ISM), with a combined investment of around INR 3,936 crore.

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

Crystal Matrix Ltd. (CML) will establish an integrated compound semiconductor fabrication and ATMP (Assembly, Testing, Marking and Packaging) facility in Dholera. The unit will manufacture Mini/Micro-LED display modules and offer GaN foundry services, including epitaxy on 6-inch wafers. It will have an annual production capacity of 72,000 square metres of display panels and 24,000 sets of RGB GaN epitaxy wafers. These products will cater to a wide range of applications including televisions, commercial displays, smartphones, tablets, in-car displays, as well as emerging technologies such as Extended Reality (XR) devices and smartwatches.

Meanwhile, Suchi Semicon Pvt. Ltd. (SSPL) will set up an Outsourced Semiconductor Assembly and Test (OSAT) facility in Surat, with a proposed capacity of 1,033.20 million chips per annum. The facility will manufacture discrete semiconductors used in power electronics, analog integrated circuits, and industrial systems, serving industries such as automotive, industrial automation, and consumer electronics.

With these approvals, the total number of semiconductor projects under ISM has increased to 12, with cumulative investments reaching approximately INR 1.64 lakh crore. The move is expected to significantly strengthen India’s semiconductor ecosystem and support its goal of becoming a global hub for chip manufacturing.

The projects will also complement India’s growing chip design ecosystem, backed by government support extended to 315 academic institutions and 104 startups. Of the previously approved projects, several are already at advanced stages, with two facilities having commenced commercial shipments and two more expected to begin soon.

The latest approvals signal accelerating momentum in India’s semiconductor sector, particularly in next-generation display technologies and advanced chip manufacturing.