India’s semiconductor push is gaining pace, with the Union Cabinet, chaired by Prime Minister Narendra Modi, approving two new manufacturing projects under the India Semiconductor Mission (ISM). Together, the projects begged an investment of over ₹3,900 crore and are expected to generate more than 2,200 skilled jobs.
Focus shifts to advanced display and packaging capabilities
The approvals mark a strategic step forward as India expands into compound semiconductor technologies, particularly Gallium Nitride (GaN) – based Mini and Micro LED display manufacturing. Alongside this, the government has also cleared a semiconductor packaging facility, strengthening downstream capabilities in the chip value chain.
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Two projects, one ecosystem boost
The first project, led by Crystal Matrix Limited (CML), will establish an integrated compound semiconductor fabrication and assembly (ATMP) facility in Dholera, Gujarat. The plant will manufacture Mini and Micro LED display modules while also offering GaN foundry services, including epitaxy on 6-inch wafers.
At full capacity, the facility is expected to produce:
- 72,000 square metres of Mini/Micro LED display panels annually
- 24,000 sets of RGB GaN epitaxy wafers per year
These components will serve a wide range of applications—from large-format TVs and commercial signage to smartphones, tablets, in-car displays, and emerging use cases such as XR devices and smartwatches.
The second project comes from Suchi Semicon Private Limited (SSPL), which will set up an Outsourced Semiconductor Assembly and Test (OSAT) facility in Surat. This unit will focus on discrete semiconductor manufacturing with a projected capacity of over 1 billion chips annually.
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Its output will cater to critical segments including power electronics, analogue integrated circuits, and industrial systems—supporting industries such as automotive, consumer electronics, and industrial automation.
Expanding India’s semiconductor footprint
With these approvals, the total number of projects under ISM rises to 12, bringing cumulative investments to approximately ₹1.64 lakh crore. The latest additions are expected to complement India’s growing chip design ecosystem, which is being supported through government-backed infrastructure across 300+ academic institutions and over 100 startups.
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Momentum building across the value chain
India’s semiconductor ambitions are no longer limited to design. With multiple fabrication, assembly, and packaging units underway, the ecosystem is steadily taking shape. Several of the previously approved projects are already in advanced stages, with two facilities having begun commercial shipments and more expected to follow soon.
