Govt Approves 2 Semiconductor Units In Gujarat, Over 2,000 Jobs Expected

The Union Cabinet, chaired by Prime Minister Narendra Modi, has cleared two new chip-related projects worth over Rs 3,900 crore. The move signals steady progress in the country’s larger plan to reduce dependence on imports and build a homegrown semiconductor ecosystem. Approved under the India Semiconductor Mission (ISM), both projects will come up in Gujarat and are expected to generate employment for more than 2,200 skilled professionals. With this, the total number of sanctioned semiconductor projects in India now stands at 12, with cumulative investments nearing Rs 1.64 lakh crore.Focus On Display Tech And Chip PackagingThe first project will be led by Crystal Matrix Limited (CML), which plans to set up an integrated compound semiconductor fabrication

and assembly facility in Dholera. This unit will focus on producing Mini and Micro-LED display modules using Gallium Nitride (GaN) technology. Notably, this will be India’s first commercial-scale facility in this category.The second project comes from Suchi Semicon Private Limited (SSPL), which will establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in Surat. The unit is expected to manufacture discrete semiconductor components with a production capacity exceeding 1,033 million chips annually.These components will serve high-growth sectors such as automotive, power electronics, industrial automation, and consumer tech, all of which are seeing rising demand as digital adoption accelerates.PM Modi Highlights Bigger VisionPrime Minister Narendra Modi shared his thoughts on X, stating, "Cabinet’s approval of new projects under the India Semiconductor Mission is a part of our efforts towards making India a leader in the global semiconductor value chain, focussing on manufacturing, packaging and advanced materials. India’s advances in the world of semiconductors will boost economic transformation, technological self-reliance and encourage the innovation ecosystem."

Building A Strong Semiconductor EcosystemThese approvals come at a time when India’s semiconductor landscape is steadily gaining traction. Several previously cleared projects are already progressing, with two units having started commercial shipments and more expected to follow soon. Beyond manufacturing, the government is also investing in design capabilities. Support has been extended to over 300 academic institutions and more than 100 startups to strengthen the chip design ecosystem.

https://www.youtube.com/watch?v=Dql1rsUf97A