Cabinet clears two new semiconductor units in Dholera, Surat, investment tops Rs 3,900 crore

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved two new semiconductor manufacturing projects with a combined investment of over ₹3,900 crore, marking another step forward in India’s push to build a self-reliant semiconductor ecosystem.

The projects, approved under the India Semiconductor Mission (ISM), will be set up in Gujarat and are expected to generate employment for more than 2,200 skilled professionals. The approvals also take the total number of sanctioned semiconductor projects in India to 12, with cumulative investments now reaching approximately ₹1.64 lakh crore.

Display and chip packaging

The first project, led by Crystal Matrix Limited (CML), will establish an integrated compound semiconductor fabrication and assembly facility in Dholera. This unit will focus on manufacturing Mini and Micro-LED display modules using Gallium Nitride (GaN) technology — marking India’s first commercial-scale facility in this segment.

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The second project, by Suchi Semicon Private Limited (SSPL), involves setting up an Outsourced Semiconductor Assembly and Test (OSAT) facility in Surat.

This unit will manufacture discrete semiconductor components with a proposed capacity of over 1,033 million chips annually.
The products will cater to key industries such as power electronics, automotive systems, industrial automation, and consumer electronics—segments that are witnessing strong demand amid rapid digitisation and electrification trends.

India’s semiconductor ecosystem

The latest approvals come at a time when India is witnessing growing momentum in semiconductor manufacturing and design. Of the previously approved projects, several are already in advanced stages of execution, with two units having commenced commercial shipments and two more expected to follow soon.

The government’s strategy combines manufacturing with design capability development. Support has been extended to over 300 academic institutions and more than 100 startups to build a robust chip design ecosystem, complementing fabrication and packaging infrastructure.

The addition of compound semiconductor and OSAT capabilities is seen as critical to reducing India’s reliance on imports and integrating the country into global semiconductor supply chains.

With rising demand for electronics, electric vehicles, and advanced computing technologies, these investments are expected to position India as a key player in next-generation semiconductor manufacturing, while also creating high-skilled jobs and fostering innovation in the sector.