The Cabinet’s clearance of two new facilities in Gujarat costing ₹3,936 crore, which are expected to create jobs for 2,230 qualified individuals, has significantly boosted India’s semiconductor ecosystem.Perspectives on the Indian Economy
These projects, which represent the 12th round of approvals under the India Semiconductor Mission, include the nation’s first GaN-based commercial mini/micro-LED display facility and a discrete semiconductor packaging unit.
Two semiconductor manufacturing projects under the India Semiconductor Mission (ISM) have been approved by the Union Cabinet, which is led by Prime Minister Narendra Modi.
The approvals include a semiconductor packaging factory and India’s first commercial mini/micro-LED display facility based on Gallium Nitride (GaN) technology, according to Information and Broadcasting Minister Ashwini Vaishnaw.
With a total expenditure of ₹3,936 crore, both facilities will be built in Gujarat and are anticipated to create jobs for 2,230 qualified individuals.
In Dholera, Gujarat, Crystal Matrix Limited (CML) will establish an integrated facility for ATMP (Assembly, Testing, Marking, and Packaging) and compound semiconductor production. In addition to producing mini/micro-LED display modules, this facility will offer GaN foundry services, such as epitaxy on six-inch wafers.
24,000 sets of RGB epitaxy wafers and 72,000 square meters of display panels are expected to be produced annually. Large displays like televisions and commercial signage, medium-sized screens for tablets, smartphones, and in-car systems, and micro-displays for smartwatches and extended reality gadgets will all be served by these items.
In Surat, Gujarat, Suchi Semicon Private Limited (SSPL) plans to build an Outsourced Semiconductor Assembly and Test (OSAT) facility. With an annual production capacity of more than 1,033 million chips, this unit will concentrate on producing discrete semiconductors.
The chips will be used in consumer electronics, automotive, industrial automation, power electronics, analog integrated circuits, and industrial systems. Lead frame and wire-bond packaging semiconductors will also be produced at the OSAT facility, which can create 673 million Small Outline Integrated Circuits (SOIC) and 263 million Transistor Outline (TO) packages annually.
With these approvals, there are now 12 projects approved under the India Semiconductor Mission, totaling approximately ₹1.64 lakh crore in investments.
Officials emphasized that these facilities will help India’s expanding chip design capabilities, which are bolstered by government-backed infrastructure spanning 104 start-ups and 315 academic institutions.
With 10 previously approved projects at various levels of execution, two already starting commercial exports, and two more anticipated to start operations soon, the sector’s momentum isThe push for semiconductors coincides with changes in global supply chains brought on by geopolitical factors and growing demand for sophisticated circuits. By lowering its reliance on imports and boosting domestic production, India hopes to establish itself as a major participant in the global electronics supply chain.
It is anticipated that Gujarat’s new facilities will stimulate regional growth, create high-skilled jobs, and promote cooperation between government, business, and academic institutions.
picking up speed.
