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

In a significant move to bolster its semiconductor industry, the Union Cabinet, led by Prime Minister Narendra Modi, has sanctioned two new manufacturing projects in Gujarat, collectively valued at over ₹3,900 crore. This decision underscores India's commitment to establishing a self-sufficient semiconductor ecosystem as part of the India Semiconductor Mission (ISM). These two projects are anticipated to create job opportunities for more than 2,200 skilled workers, bringing the total number of approved semiconductor initiatives in India to 12, with overall investments now reaching an impressive ₹1.64 lakh crore. The first initiative, spearheaded by Crystal Matrix Limited (CML), aims to develop an integrated facility for compound semiconductor fabrication and assembly in Dholera. This groundbreaking site will specialize in producing Mini and Micro-LED display modules utilizing Gallium Nitride (GaN) technology, marking India’s inaugural venture into commercial-scale production in this area. Simultaneously, Suchi Semicon Private Limited (SSPL) will establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in Surat. This facility is projected to manufacture over 1,033 million discrete semiconductor components each year, catering to vital sectors such as 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 a surge in momentum within India’s semiconductor sector, where several previously greenlit projects are already progressing, including two that have commenced commercial shipments. This strategy not only emphasizes manufacturing but also prioritizes the development of design capabilities. The Indian government has extended support to over 300 educational institutions and more than 100 startups, aiming to cultivate a robust chip design ecosystem alongside fabrication and packaging infrastructure. The introduction of compound semiconductor and OSAT capabilities is crucial for diminishing India’s dependency on imports and for integrating the nation into the global semiconductor supply chain. With the increasing demand for electronics, electric vehicles, and advanced computing technologies, these investments are poised to establish India as a pivotal player in next-generation semiconductor manufacturing, while simultaneously generating high-skilled employment and driving innovation in this vital sector.