Cabinet Approves Two New Semiconductor Projects in Gujarat

12 May 2026 CW Team

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved two semiconductor projects in Gujarat under the India Semiconductor Mission. The projects will be established at Dholera and Surat and will attract a combined investment of Rs 39,360 million (mn). The approvals will generate employment for around 2,230 skilled professionals. The move forms part of a broader strategy to develop domestic semiconductor capabilities.

Crystal Matrix Limited will establish an integrated compound semiconductor fabrication and ATMP facility at Dholera. The unit will manufacture gallium nitride-based mini and micro LED display modules, constituting the country’s first commercial facility of its kind. It has an annual production capacity of 72,000 square metres of display panels and 24,000 sets of RGB wafers. These products will serve advanced applications including smart televisions, smartphones, in-car displays, smart wearables and extended reality devices.

Suchi Semicon Private Limited will set up an outsourced semiconductor assembly and test facility in Surat. The unit will have the capacity to produce over 1,033 mn chips annually and will cater to sectors such as power electronics, analogue integrated circuits, automotive, consumer electronics and industrial automation. With these approvals, the total number of projects sanctioned under the India Semiconductor Mission has risen to 12. The cumulative investment under the mission now exceeds Rs 1.64 trillion (tn).

Officials described the approvals as a step towards strengthening the domestic supply chain, promoting advanced technology manufacturing and creating a skilled workforce. The projects are aimed at attracting ancillary firms and further investment into the relevant industrial clusters. Implementation timelines were not specified in the release. The approvals contribute to the government's drive to expand India's semiconductor capabilities.

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