The first project, led by Crystal Matrix Limited (CML), will establish an integrated compound semiconductor fabrication and assembly facility in Dholera.

Eye on China chips, Cabinet nod to Rs 3,936-crore semiconductor units in Gujarat

Union Minister for Information and Broadcasting, Ashwini Vaishnaw, announced that these projects include the country's first commercial mini/micro-LED display facility based on Gallium Nitride (GaN) technology and a semiconductor packaging facility.

by · India Today

In Short

  • First commercial mini/micro-LED display plant to be set up in Gujarat
  • Crystal Matrix to build facility for mini/micro-LED modules in Dholera
  • Suchi Semicon to start semiconductor packaging unit in Surat

The Cabinet approved two additional semiconductor manufacturing units on Tuesday with a cumulative investment of more than Rs 3,936 crore under the India Semiconductor Mission (ISM). The move will boost India's aim to position itself as a leading global semiconductor hub by 2032.

Union Minister for Information and Broadcasting, Ashwini Vaishnaw, announced that these projects include the country's first commercial mini/micro-LED display facility based on Gallium Nitride (GaN) technology and a semiconductor packaging facility.

Both plants will be located in Gujarat and are expected to generate employment for approximately 2,230 skilled professionals.’

Among the two manufacturing units, Crystal Matrix Limited (CML) will establish an integrated facility for compound semiconductor fabrication and ATMP (Assembly, Testing, Marking, and Packaging) in Dholera for mini/micro-LED display modules, while Suchi Semicon Private Limited (SSPL) will set up an Outsourced Semiconductor Assembly and Test (OSAT) facility in Surat for discrete semiconductors.

These approvals bring the total number of projects under the ISM to 12, boosting the total cumulative investment in the national semiconductor ecosystem to approximately Rs 1.64 lakh crore.

Meanwhile, Prime Minister Narendra Modi hailed the cabinet’s latest decision.

“Cabinet’s approval of new projects under the India Semiconductor Mission is a part of our efforts towards making India a leader in the global semiconductor value chain, focusing on manufacturing, packaging and advanced materials. India’s advances in the world of semiconductors will boost economic transformation, technological self-reliance and encourage the innovation ecosystem,” he wrote on X.

India's semiconductor scenario, at present, is heavily dependent on China, with imports touching more than 50% in the past few years. However, New Delhi is presently seeking to diversify its sources and is also encouraging chip design talent at home. The two manufacturing hubs is expected to provide a major boost to the latter.

- Ends