The Union Cabinet on Tuesday approved two additional semiconductor manufacturing projects with a combined investment exceeding Rs 3,936 crore under the India Semiconductor Mission (ISM), marking another major step in India’s effort to emerge as a global semiconductor manufacturing hub by 2032. The new projects are expected to strengthen the country’s domestic chip ecosystem, reduce dependence on imports, and expand India’s role in advanced electronics and semiconductor production.
Union Minister for Information and Broadcasting, Ashwini Vaishnaw, announced that the approved projects include India’s first commercial mini/micro-LED display manufacturing facility based on Gallium Nitride (GaN) technology, along with a semiconductor packaging facility. The minister stated that both projects would be established in Gujarat and are expected to create employment opportunities for nearly 2,230 skilled professionals in the semiconductor and electronics sector.
One of the approved projects will be set up by Crystal Matrix Limited (CML), which plans to establish an integrated compound semiconductor fabrication and ATMP facility in Dholera, Gujarat. The plant will manufacture mini and micro-LED display modules and will also handle Assembly, Testing, Marking and Packaging operations. Officials stated that the project represents a significant technological advancement because Gallium Nitride-based mini and micro-LED displays are considered next-generation display technologies with applications in consumer electronics, automotive systems, industrial devices and advanced communication systems.
The second approved project will be developed by Suchi Semicon Private Limited (SSPL), which will establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in Surat, Gujarat. According to officials, the plant will focus on discrete semiconductors and advanced packaging operations, further strengthening India’s semiconductor assembly and testing capabilities.
With these latest approvals, the total number of projects sanctioned under the India Semiconductor Mission has now increased to 12. The government stated that cumulative investment commitments under the mission have reached approximately Rs 1.64 lakh crore, reflecting the rapid expansion of India’s semiconductor manufacturing ecosystem over the past few years.
Prime Minister Narendra Modi welcomed the Cabinet’s decision and stated that the newly approved projects form an important part of India’s strategy to become a major player in the global semiconductor value chain. In a message shared on social media, the Prime Minister said the projects would help strengthen semiconductor manufacturing, packaging capabilities and advanced material production in the country.
Modi further stated that India’s progress in semiconductor technology would contribute significantly towards economic transformation, technological self-reliance and the growth of innovation-driven industries. According to the government, semiconductor manufacturing is considered strategically important because chips are now essential for sectors such as telecommunications, automobiles, artificial intelligence, defence systems, consumer electronics and industrial automation.
At present, India remains heavily dependent on semiconductor imports, particularly from China and other foreign suppliers. Industry estimates suggest that more than half of India’s semiconductor requirements have been met through imports in recent years. As geopolitical tensions and global supply chain disruptions exposed vulnerabilities in semiconductor dependence worldwide, New Delhi has accelerated efforts to diversify supply sources and build a domestic semiconductor ecosystem.
Officials stated that alongside manufacturing expansion, the government is also encouraging the growth of chip design talent, semiconductor research, and electronics innovation within India. The newly approved manufacturing facilities in Gujarat are expected to support these broader goals by creating local expertise, attracting investments, and developing a stronger semiconductor supply chain within the country.
The projects are also expected to strengthen Gujarat’s position as a key semiconductor and electronics manufacturing destination, particularly with Dholera emerging as an important technology and industrial hub under India’s semiconductor development plans.
