India Boosts Chip Ambitions with ₹3,936 Crore Semiconductor Expansion, Launches First GaN-Based Micro LED Facility
In a major step toward strengthening domestic semiconductor manufacturing, the Union Cabinet chaired by Narendra Modi has approved two new projects with a combined investment of ₹3,936 crore under the India Semiconductor Mission.
The approved proposals will be located in Gujarat and include the country’s first commercial Mini/Micro LED display manufacturing facility based on Gallium Nitride technology, along with a semiconductor assembly and test unit. These projects mark a significant move toward building advanced semiconductor capabilities and deepening India’s position in next-generation electronics manufacturing.
Crystal Matrix Limited will set up an integrated compound semiconductor fabrication and ATMP facility in Dholera. The unit will focus on manufacturing Mini and Micro LED display modules while also offering GaN foundry services, including epitaxy on 6-inch wafers. The facility is expected to produce 72,000 square meters of display panels annually and 24,000 sets of RGB GaN epitaxy wafers, catering to applications across televisions, commercial displays, smartphones, automotive systems, XR devices and wearable technologies.
The second project, led by Suchi Semicon Private Limited, will establish an Outsourced Semiconductor Assembly and Test facility in Surat. This unit will manufacture discrete semiconductors with a production capacity of over 1,033 million chips per year, targeting applications in power electronics, analog integrated circuits, automotive systems, industrial automation and consumer electronics.
With these approvals, the total number of projects under the India Semiconductor Mission has reached 12, with cumulative investments of approximately ₹1.64 lakh crore. The new projects are expected to generate over 2,200 skilled jobs and further accelerate the development of a robust semiconductor ecosystem in the country.
The expansion aligns with India’s growing chip design ecosystem, supported by government-backed infrastructure across more than 300 academic institutions and over 100 startups. It also reflects increasing momentum in the sector, with multiple projects already under execution, two facilities having commenced commercial shipments and additional units expected to become operational soon.
These developments underscore India’s strategic shift toward building an integrated semiconductor value chain, with a focus on advanced technologies such as GaN and Micro LED displays, positioning the country as a serious contender in the global electronics and semiconductor landscape.
