Union Cabinet Approves Two New Semiconductor Projects
- 06 May 2026
On 5th May 2026, the Union Cabinet, chaired by the Prime Minister Narendra Modi, approved two semiconductor manufacturing projects worth ₹3,936 crore under the India Semiconductor Mission (ISM), aimed at strengthening India’s advanced chip manufacturing ecosystem.
Key Points
- Employment Generation: The projects are expected to create employment opportunities for around 2,230 skilled professionals.
- First Mini/Micro-LED Facility: Crystal Matrix Limited will establish India’s first commercial Mini/Micro-LED display manufacturing unit in Dholera based on Gallium Nitride (GaN) technology.
- Production Capacity: The Dholera facility will manufacture 72,000 square metres of Mini/Micro-LED display panels annually and 24,000 sets of RGB GaN epitaxy wafers.
- Advanced Applications: The products will support TVs, smartphones, automotive displays, smartwatches, extended reality (XR) devices, and commercial display systems.
- GaN Foundry Services: The unit will also provide GaN foundry services, including epitaxy on 6-inch wafers.
- OSAT Facility in Surat: Suchi Semicon Private Limited will establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in Surat.
- Chip Manufacturing Capacity: The Surat plant will produce over 1,033 million semiconductor chips annually for the automotive, industrial automation, and consumer electronics sectors.
- Focus Areas: The OSAT unit will support power electronics and analog integrated circuit applications.
- Growing Semiconductor Ecosystem: With these approvals, India now has 12 semiconductor projects under ISM with total investments of about ₹1.64 lakh crore.
- Innovation Support: The semiconductor ecosystem is being supported through infrastructure initiatives involving over 315 academic institutions and 104 startups.
- Strategic Significance: The projects strengthen India’s goal of achieving semiconductor self-reliance and emerging as a global electronics manufacturing hub.
