Cabinet nod for 2 semiconductor plants in Gujarat worth ₹3,900 crore; first Micro-LED unit cleared

The Union Cabinet on Tuesday approved two semiconductor manufacturing projects with a combined investment of over ₹3,900 crore, including the country’s first commercial Mini/Micro-LED display facility based on Gallium Nitride (GaN) technology.

The approvals, cleared at a meeting chaired by Prime Minister Narendra Modi, are part of the government’s India Semiconductor Mission (ISM) to strengthen domestic chip-making capabilities.

The two projects, to be set up in Gujarat with a total investment of around ₹3,936 crore, are expected to generate employment for about 2,230 skilled professionals, according to an official statement.

Crystal Matrix Limited will establish an integrated compound semiconductor fabrication and assembly, testing, marking and packaging (ATMP) facility at Dholera.

The unit will manufacture Mini/Micro-LED display modules and offer GaN foundry services, including epitaxy on 6-inch wafers.

The facility will have an annual production capacity of 72,000 square metres of Mini/Micro-LED display panels and 24,000 sets of RGB GaN epitaxy wafers.

“The proposed products will have applications in large displays for TVs and signages/commercial displays, Medium-sized displays for tablets, smartphones, and in-car displays, and Micro-displays for Extended Reality (XR) glasses and smart watches,” an official release said.

Suchi Semicon Private Limited will set up an Outsourced Semiconductor Assembly and Test (OSAT) facility in Surat to manufacture discrete semiconductor chips. The unit is expected to have a production capacity of over 1,033 million chips per year.

The chips will be used in sectors such as power electronics, analog integrated circuits, and industrial systems, with applications spanning automotive, industrial automation, and consumer electronics.

With these approvals, the total number of projects sanctioned under ISM has risen to 12, with cumulative investments of about ₹1.64 lakh crore, the release said.

The government said the new units will complement India’s expanding chip design ecosystem, supported through design infrastructure extended to over 300 academic institutions and more than 100 start-ups.

“Momentum is building up further in the semiconductor ecosystem in India with the ten approved projects already in various stages of execution. Two projects have already started commercial shipments from India and Two more are expected to start commercial shipments soon,” the Ministry of Electronics & IT said in a statement.