Cabinet Clears Two New Semiconductor Units Worth ₹3,900 Crore, Boosts India Chip Push

New Delhi, May 5, 2026: The Union Cabinet chaired by Prime Minister Narendra Modi has approved two additional semiconductor manufacturing projects under the India Semiconductor Mission, marking a fresh push in India’s efforts to build a domestic chip ecosystem and reduce import dependence.

The combined investment for the two projects stands at approximately ₹3,936 crore, and both facilities will be established in Gujarat, further strengthening the state’s emerging role as a key semiconductor manufacturing hub.

According to official details, the approvals take the total number of sanctioned semiconductor projects under the mission to 12, with cumulative investments reaching nearly ₹1.64 lakh crore.

The first project involves Crystal Matrix Limited, which will set up an integrated compound semiconductor fabrication and ATMP facility in Dholera, Gujarat, focused on Mini and Micro LED display technology based on Gallium Nitride.

This facility will also offer GaN foundry services, including epitaxy on 6 inch wafers, and is expected to produce 72,000 square meters of Mini and Micro LED display panels annually along with 24,000 sets of RGB wafers.

These products are intended for a wide range of applications including televisions, digital signage, smartphones, tablets, in car displays, wearable devices, and extended reality technologies.

The second project has been approved for Suchi Semicon Private Limited, which will establish an Outsourced Semiconductor Assembly and Test facility in Surat, focusing on discrete semiconductor manufacturing.

This unit is expected to produce over 1,033 million chips per annum, catering to sectors such as power electronics, automotive systems, industrial automation, analog integrated circuits, and consumer electronics.

Officials stated that both projects will significantly strengthen India’s semiconductor supply chain by adding advanced manufacturing and packaging capabilities within the country.

The Cabinet noted that these initiatives are aligned with India’s long term vision of becoming a global hub for semiconductor design and manufacturing.

The government also highlighted that India’s chip design ecosystem is rapidly expanding, supported by design infrastructure initiatives across 315 academic institutions and over 100 startups.

At present, ten semiconductor projects under the mission are already under various stages of execution, with two units beginning commercial shipments and more expected to start production soon.

The latest approvals are expected to generate approximately 2,230 skilled jobs, contributing to employment growth in high technology manufacturing sectors.

Officials said the move reflects growing investor confidence in India’s semiconductor policy framework and its long term industrial strategy.

With these new approvals, India is accelerating its transition toward advanced electronics manufacturing and strengthening its position in the global semiconductor value chain.