The Union Cabinet has approved two new semiconductor units — Crystal Matrix and Suchi Semicon. Twelve chip plants have now been cleared under the India Semiconductor Mission, expected to create 2,230 skilled jobs.
New Delhi, May 5. The Union Cabinet on Monday cleared two new semiconductor manufacturing units in Gujarat with a combined investment of about ₹3,936 crore. The decision marks another major leap in India's effort to become an integral part of the global semiconductor supply chain.
Two flagship projects
The first project will see Crystal Matrix set up an integrated compound semiconductor fab and assembly, testing, marking and packaging (ATMP) facility in Dholera. It will include India's first commercial mini/micro-LED display unit using Gallium Nitride (GaN) technology.
The second unit will be operated by Suchi Semicon and will focus on specialised chip categories. Both projects are expected to begin production within three years.
Pace of the India Semiconductor Mission
With these two approvals, the total number of chip plants cleared under the India Semiconductor Mission (ISM) now stands at 12. The government aims for India to capture a 10% share of the global semiconductor market by 2030.
2,230 jobs and supporting industries
According to government estimates, the two projects will directly create 2,230 skilled jobs. Thousands of additional indirect roles are expected in supporting industries — specialty chemicals, gas supply, cleanroom equipment, and logistics.
Why Gujarat is becoming the hub
Strong infrastructure, the presence of earlier ISM projects, and an aggressive state-level incentive policy have made Gujarat the prime destination for chip manufacturing. The Dholera Special Investment Region already houses projects by Tata, Micron, and CG Power.
The road ahead
Design-Linked Incentive (DLI) and Production-Linked Incentive (PLI) schemes are accelerating chip manufacturing under the Atmanirbhar Bharat umbrella. Officials say India is on track to become the world's fourth-largest semiconductor design hub after the US, Taiwan, and South Korea.
