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Cabinet Approves Rs 3,936 Crore Semiconductor Projects In Gujarat Under ISM
May 6, 2026
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Cabinet Approves Rs 3,936 Crore Semiconductor Projects In Gujarat Under ISM New Delhi, May 6 (KNN) The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved two semiconductor manufacturing projects in Gujarat with a combined investment of Rs 3,936 crore, marking a further expansion of the India Semiconductor Mission (ISM). The approved proposals include the country’s first commercial Mini/Micro-LED display manufacturing facility based on gallium nitride (GaN) technology, along with a semiconductor packaging unit.
Together, the projects are expected to generate employment for around 2,230 skilled professionals. Crystal Matrix Limited will establish an integrated compound semiconductor fabrication and assembly, testing, marking, and packaging (ATMP) facility in Dholera. The unit will manufacture Mini/Micro-LED display modules and offer GaN foundry services, including epitaxy on 6-inch wafers. The proposed capacity includes 72,000 square metres of display panels annually and 24,000 sets of RGB epitaxy wafers, catering to applications across televisions, smartphones, automotive displays, and extended reality devices. Suchi Semicon Private Limited will set up an Outsourced Semiconductor Assembly and Test (OSAT) facility in Surat for discrete semiconductor production, with an annual capacity of over 1,033 million chips. The facility will serve sectors such as power electronics, industrial automation, automotive systems, and consumer electronics. With these approvals, the total number of projects sanctioned under ISM has risen to 12, with cumulative investments of approximately Rs 1.64 lakh crore. The expansion is expected to strengthen India’s semiconductor ecosystem, complementing ongoing efforts to build domestic chip design capabilities supported by academic institutions and startups. The government noted that several previously approved projects are at advanced stages of implementation, with some already commencing commercial production, indicating accelerating momentum in India’s semiconductor manufacturing ambitions. (KNN Bureau)
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