The Union Cabinet has sanctioned two major semiconductor projects in Gujarat under the final phase of the India Semiconductor Mission 1.0, involving a total investment of ₹3,936 crore. These projects include India’s first commercial Gallium Nitride (GaN) based Mini and Micro-LED display facility and a specialized semiconductor packaging unit. This move marks the completion of the mission’s first iteration, aimed at establishing a self-reliant manufacturing ecosystem for electronics in the country.
Expanding India’s Semiconductor Footprint: The Final Projects of ISM 1.0
The approval of these two projects signifies a pivotal moment for the India Semiconductor Mission (ISM), as they represent the final set of sanctions under the mission’s first version. The ISM, launched in 2021 with a financial outlay of ₹76,000 crore, was designed to position India as a global hub for semiconductor and display manufacturing. With these latest additions, the total number of projects cleared under ISM 1.0 has reached 12, attracting a cumulative committed investment of approximately ₹1.64 lakh crore.
Both newly approved units will be located in Gujarat, a state that is rapidly emerging as India’s primary semiconductor corridor. These projects are expected to generate direct and indirect employment for over 2,230 skilled professionals, further strengthening the domestic talent pool in high-tech manufacturing. The mission operates as a specialized division within the Digital India Corporation under the Ministry of Electronics and Information Technology (MeitY).
Crystal Matrix: India’s First Commercial GaN-based Display Facility
Crystal Matrix Ltd (CML) will establish an integrated compound semiconductor fabrication and Assembly, Testing, Marking, and Packaging (ATMP) facility in Dholera, Gujarat. With an investment of ₹3,068 crore, this facility is set to become India’s first commercial unit dedicated to Gallium Nitride (GaN) based Mini and Micro-LED display modules. The project involves collaboration with South Korean technology leaders, Lumens and Soft-Epi, ensuring that India has access to cutting-edge manufacturing processes.
The facility is planned to have a significant annual production capacity, including 72,000 square meters of display panels and 24,000 sets of Red-Green-Blue (RGB) wafers. By focusing on Micro-LED technology, India aims to skip older display generations and compete directly in the future market for high-performance screens. This project alone is expected to create over 1,600 direct jobs in the region.
Applications of Gallium Nitride (GaN) Technology
Gallium Nitride is a wide bandgap semiconductor material that offers superior efficiency, brightness, and thermal conductivity compared to traditional silicon. It is particularly crucial for the development of Micro-LEDs, which are considered the next generation of display technology. These displays are used in a wide range of devices, including high-end televisions, smartphones, automotive dashboards, and Augmented Reality (AR) or Extended Reality (XR) headsets. The high electron mobility of GaN allows for faster switching speeds, making it ideal for high-resolution and high-refresh-rate applications.
Suchi Semicon: Strengthening the Packaging Ecosystem in Gujarat
The second project approved by the Cabinet is an Outsourced Semiconductor Assembly and Test (OSAT) facility by Suchi Semicon Pvt Ltd (SSPL). Located in Surat, Gujarat, this unit represents an investment of ₹868 crore. Unlike fabrication units that create raw wafers, OSAT facilities focus on the critical back-end process of packaging, testing, and assembling chips into their final forms.
This facility will specifically produce lead-frame and wire-bonded packaging, which are essential for discrete semiconductor components. These chips are widely used in consumer electronics like air conditioners and televisions, as well as in power electronics and automotive systems. The plant is designed to scale up its operations to produce nearly 3 million chips per day, significantly boosting India’s domestic supply chain for electronic components. This project is expected to generate direct employment for approximately 630 individuals.
The India Semiconductor Mission (ISM) 1.0: A Retrospective
The India Semiconductor Mission (ISM) was launched in 2021 with a clear mandate to build a vibrant and sustainable semiconductor and display ecosystem. Under ISM 1.0, the government provided fiscal support of up to 50% of the project cost on a pari-passu basis for setting up silicon fabs, display fabs, compound semiconductors, and OSAT units.
With the approval of the CML and SSPL projects, the first phase of the mission has officially concluded. The government has already indicated a transition toward ISM 2.0, which was announced in the Union Budget 2026-27. While the first phase focused on attracting major fabrication and packaging units, the next phase is expected to broaden its scope to include the entire supply chain, including semiconductor equipment, materials like specialty chemicals and gases, and advanced IP design.
| Mission Phase | Primary Focus | Key Outcome (ISM 1.0) |
|---|---|---|
| ISM 1.0 | Fabrication and Packaging Units | 12 Projects sanctioned with ₹1.64 lakh crore investment |
| ISM 2.0 | Ecosystem deepening and supply chain | Focus on materials, equipment, and design |
The mission is governed by the Digital India Corporation, which acts as the nodal agency for coordinating between different government departments and industry stakeholders to ensure the smooth implementation of these capital-intensive projects.
Strategic Significance of the Cabinet Approval
The approval of these final projects under ISM 1.0 carries immense strategic weight for India’s electronics manufacturing ambitions. By establishing a commercial Gallium Nitride display facility, India is making a technology leap into the future of display panels. This reduces the country’s heavy reliance on imports for high-end electronic screens and positions it as a potential exporter of Micro-LED technology.
The expansion of the OSAT and ATMP network ensures that the semiconductor value chain is well-integrated within India. As more fabrication units come online, having local packaging and testing facilities will reduce lead times and logistics costs for global electronics manufacturers. This ecosystem development is a key pillar of the Make in India initiative and the broader goal of Atmanirbhar Bharat (Self-Reliant India) in the technology sector. These projects are also expected to catalyze the growth of ancillary industries, ranging from specialty chemicals to high-precision engineering services.
Key Takeaways
- The Union Cabinet has approved the final two semiconductor projects under ISM 1.0 with a total investment of ₹3,936 crore.
- Crystal Matrix Ltd will establish India’s first commercial Gallium Nitride (GaN) based display facility in Dholera, Gujarat.
- Suchi Semicon Pvt Ltd will set up an Outsourced Semiconductor Assembly and Test (OSAT) facility in Surat, Gujarat.
- A total of 12 projects have been sanctioned under the first phase of the India Semiconductor Mission, attracting ₹1.64 lakh crore in investment.
- The India Semiconductor Mission was launched in 2021 with a total financial outlay of ₹76,000 crore under the Digital India Corporation.
- The government has announced ISM 2.0 in the Union Budget 2026-27 to focus on the broader semiconductor supply chain and equipment manufacturing.
