India’s chip push gets another boost; Cabinet gives nod to 2 semiconductor units in Gujarat

India’s semiconductor manufacturing drive gathered further momentum on Tuesday, with the Union Cabinet clearing two new projects worth nearly Rs 4,000 crore under the India Semiconductor Mission. This marks a crucial step in accelerating the country's advancement into compound semiconductor-based mini and micro LED display. The two projects -- one focused on advanced display technology and the other on chip packaging -- will be set up in Gujarat and are expected to generate 2,230 skilled jobs.

In a major first for the country, Crystal Matrix Limited has received approval to build India’s first commercial mini/micro-LED display manufacturing facility using gallium nitride (GaN) technology in Dholera, Gujarat. The plant will manufacture next-generation display modules used in televisions, smartphones, tablets, automotive displays, smartwatches and extended reality devices.

The second approval goes to Suchi Semicon Private Limited, which will set up a chip assembly and testing facility in Surat, Gujarat. The plant will manufacture more than a billion semiconductor units annually for applications ranging from power electronics to industrial systems and consumer devices.

Add Zee Business as a Preferred Source

With these approvals, India has now cleared 12 semiconductor projects under the India Semiconductor Mission, with total investments touching Rs 1.64 lakh crore.

Government officials said that the country’s semiconductor ecosystem is now moving from approvals to execution, with two projects already shipping commercially and more facilities expected to go live in the coming months.

Project details

Crystal Matrix facility in Dholera

Crystal Matrix's integrated facility will provide gallium nitride foundry services, including epitaxy on six-inch wafers.

Targeted annual production capacity:

• Mini/micro-LED display panels: 72,000 square meters
• Mini-micro-LED GaN epitaxy wafers: 24,000 sets of RGB wafers.

Suchi Semicon facility in Surat

Suchi Semicon's outsourced semiconductor assembly and test (OSAT) facility will manufacture discrete semiconductors.

Targeted production capacity:

• 1033.20 million chips per annum

India to get 2 additional chip-making units with Rs 4,000 crore investment: 5 key takeaways

• The development marks the country's foray into gallium nitride (GaN) micro-LED segment -- an emerging display and lighting technology that uses tiny LEDs to create high-contrast and energy-efficient screens -- under the government's broader India Semiconductor Mission. These products are commonly used in wearables, automotive, AR/VR and high-end displays.

• With the two approvals in place, the domestic semiconductor ecosystem is set to get a significant boost as the total number of approved projects under the Mission reaches 12 (with cumulative investments of around Rs 1.64 lakh crore).

• The two projects follow 10 already approved projects that are currently in various stages of execution. Two projects have already begun commercial outward shipments while two others are expected to start commercial shipments soon, according to an official statement.

• Core to smartphones, automobiles, telecommunications, defense equipment and other industrial applications, semiconductors are the backbone of modern electronics and power systems, adding a foundational and strategic technology layer to applications.
• The Mission aims to establish a semiconductor and display ecosystem in the country, positioning it as a global hub for electronics and reducing its reliance on imports. Launched in December 2021, it seeks to create a complete domestic semiconductor ecosystem -- from design to manufacturing -- supported by fiscal incentives and supply-chain strengthening measures.