Cabinet Approves Rs 3,900 Crore Semiconductor Plants; India's First Mini-LED Factory Cleared

The Union Cabinet has approved two new semiconductor manufacturing projects under the India Semiconductor Mission (ISM 1.0), marking a fresh push to strengthen India’s domestic chipmaking ecosystem. With these approvals, the total number of sanctioned semiconductor projects under the mission has now risen to 12.

The combined investment for the two projects is estimated at around ₹3,936 crore, and both will be set up in Gujarat. Officials said the projects are expected to generate more than 2,200 skilled jobs, contributing to India’s growing electronics manufacturing and high-tech employment base.

One of the key approvals is for a project led by Crystal Matrix in Dholera, which will establish the country’s first commercial mini/micro-LED display manufacturing facility based on Gallium Nitride (GaN) technology. The unit will include an integrated compound semiconductor fabrication and assembly setup aimed at advanced display production.

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The facility is designed to serve multiple sectors, including televisions, smartphones, automotive displays, and emerging technologies such as extended reality devices. Officials noted that the project represents a significant step in building India’s capabilities in next-generation semiconductor and display technologies.

The second approved project is being developed by Suchi Semicon in Surat. It will set up an outsourced semiconductor assembly and test (OSAT) facility focused on discrete semiconductors. The unit will cater to applications in power electronics, industrial systems, automotive technology, and consumer electronics, with a planned production capacity exceeding one billion chips annually.

With these approvals, the government continues to accelerate its semiconductor strategy, aiming to reduce import dependency and build a strong domestic supply chain. The latest investments are expected to enhance India’s position in the global semiconductor value chain while supporting long-term industrial and technological growth.

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