The Union Cabinet chaired by Prime Minister Narendra Modi has approved two semiconductor projects in Gujarat under the India Semiconductor Mission. The schemes will be established at Dholera and Surat and will attract a combined investment of Rs 39.36 billion (bn) and generate employment for around 2,230 skilled professionals. The approvals form part of a broader government effort to scale domestic semiconductor manufacturing and reduce import dependence. Officials noted the projects will complement earlier ISM approvals and contribute to regional industrial development.

Crystal Matrix Limited will establish an integrated compound semiconductor fabrication and Assembly, Testing, Marking and Packaging facility at Dholera. The unit will manufacture gallium nitride based mini and micro LED display modules, representing the country's first commercial facility of its kind. It will have an annual production capacity of 72,000 square metres of display panels and 24,000 sets of RGB wafers.

Suchi Semicon Private Limited will set up an outsourced semiconductor assembly and test facility in Surat with the capacity to produce over 1,033 million (mn) chips annually. The output is intended for sectors including power electronics, analogue integrated circuits, automotive, consumer electronics and industrial automation. The Surat unit will augment India's OSAT ecosystem and support downstream manufacturing. The production scale is intended to meet domestic demand and reduce reliance on imports in targeted segments.

With these approvals the total number of projects sanctioned under the India Semiconductor Mission has risen to 12 with cumulative investments exceeding Rs 1.64 trillion (tn). Officials added the measures aim to encourage investment in advanced materials and packaging capabilities. Officials said the measures reinforce the policy framework aimed at attracting strategic technology investments and building local supply chains. The two projects are presented as steps towards strengthening domestic capabilities in advanced semiconductor segments.