Cabinet approves semiconductor projects to boost chip manufacturing in Gujarat

Ahmedabad: The Union Cabinet approved semiconductor projects under the India Semiconductor Mission to expand chip manufacturing and display technology capabilities in Gujarat.

The decision includes two new facilities with a combined investment of ₹3,936 crore. Moreover, the projects are expected to generate employment for 2,230 skilled professionals.

One of the approved semiconductor projects involves Crystal Matrix Limited setting up an integrated facility in Dholera. The unit will manufacture Mini and Micro-LED display modules using Gallium Nitride technology. In addition, it will provide foundry services, including epitaxy on six-inch wafers.

The facility will produce 72,000 square metres of display panels annually. It will also manufacture 24,000 sets of RGB wafers. These products will support applications in televisions, smartphones, automotive displays, and extended reality devices.

Semiconductor projects expand display and chip ecosystem

The second proposal involves Suchi Semicon Private Limited establishing an OSAT facility in Surat. The plant will manufacture discrete semiconductors with a capacity of over 1,033 million chips per year.

These chips will serve sectors such as automotive, industrial automation, and consumer electronics. Therefore, the facility is expected to strengthen supply chains across multiple industries.

With these approvals, the total number of semiconductor projects under the India Semiconductor Mission has reached 12. The cumulative investment now stands at about ₹1.64 lakh crore.

Officials said the projects would complement India’s growing chip design ecosystem. Government support has already extended to 315 academic institutions and 104 start-ups.

Furthermore, several approved projects are progressing at different stages of execution. Two units have already started commercial shipments, while two more are expected to begin operations soon.

The government said the new semiconductor projects would accelerate technological advancement and enhance India’s position in the global electronics manufacturing sector.