Cabinet clears two new semiconductor units in Gujarat, investment tops Rs 3,900 crore

The Union Cabinet, under the leadership of Prime Minister Narendra Modi, has given the green light to two significant semiconductor manufacturing initiatives, totaling an investment of over ₹3,900 crore. This decision marks a pivotal advancement in India's ambition to cultivate a self-sufficient semiconductor ecosystem. These projects, sanctioned as part of the India Semiconductor Mission (ISM), will be established in Gujarat and are projected to create over 2,200 job opportunities for skilled professionals. With these approvals, the total count of sanctioned semiconductor projects in India has now reached 12, with combined investments nearing ₹1.64 lakh crore. The first initiative, spearheaded by Crystal Matrix Limited (CML), will launch an integrated compound semiconductor fabrication and assembly facility in Dholera. This facility will specialize in producing Mini and Micro-LED display modules utilizing Gallium Nitride (GaN) technology, marking India’s inaugural commercial-scale operation in this field. Meanwhile, the second project, initiated by Suchi Semicon Private Limited (SSPL), involves the establishment of an Outsourced Semiconductor Assembly and Test (OSAT) unit in Surat. This facility aims to manufacture discrete semiconductor components with an anticipated output of over 1,033 million chips per year. These products will serve critical sectors including power electronics, automotive systems, industrial automation, and consumer electronics, all of which are experiencing heightened demand due to rapid digitization and electrification. The timing of these approvals coincides with India's increasing momentum in semiconductor manufacturing and design. Several previously approved initiatives are progressing swiftly, with two facilities already beginning commercial shipments, while two more are expected to follow suit shortly. The government's strategy effectively combines manufacturing with the development of design capabilities. Over 300 academic institutions and more than 100 startups have been supported to create a robust chip design ecosystem that complements fabrication and packaging facilities. The introduction of compound semiconductor and OSAT capabilities is deemed essential for decreasing India's dependence on imports and integrating the nation into global semiconductor supply chains. With the escalating demand for electronics, electric vehicles, and advanced computing solutions, these investments are poised to elevate India as a significant player in next-generation semiconductor manufacturing, while also generating high-skilled employment opportunities and nurturing innovation within the sector.