India Clears Rs 3,936 Crore Chip Projects to Strengthen Manufacturing

India has cleared semiconductor projects worth ₹3,936 crore to strengthen electronics manufacturing and domestic chip manufacturing, marking another important step in the country’s push to become a global semiconductor hub. The Union Cabinet on Tuesday approved two new semiconductor units in Gujarat under the India Semiconductor Mission (ISM), with the projects expected to create over 2,200 skilled jobs and support the growing demand for advanced electronics and chip technologies.

The approved projects include a compound semiconductor fabrication and advanced display manufacturing facility by Crystal Matrix Limited in Dholera, along with an OSAT facility by Suchi Semicon Private Limited in Surat. The government said these investments will help reduce India’s dependence on imported semiconductor components while strengthening the country’s electronics sector.

Crystal Matrix Limited will set up India’s first commercial Mini and Micro-LED display manufacturing facility based on Gallium Nitride (GaN) technology. The unit will produce advanced display modules used in televisions, smartphones, automotive displays, tablets, smartwatches, and extended reality devices. The facility will also provide GaN foundry services, which are becoming increasingly important for next-generation electronics and energy-efficient display systems.

Also Read: L&T Wins Major Odisha Coal-to-Ammonium Nitrate Project Order

Meanwhile, Suchi Semicon’s OSAT facility will focus on producing discrete semiconductors for sectors such as automotive electronics, industrial automation, power electronics, and consumer electronics. The company is expected to manufacture more than one billion chips annually, giving a major boost to India’s semiconductor packaging and testing capabilities.

With these latest approvals, the total number of semiconductor projects approved under the India Semiconductor Mission has increased to 12. Combined investments under the programme have now reached nearly ₹1.64 lakh crore, reflecting the government’s aggressive push to build a strong domestic semiconductor supply chain.

The move comes at a time when countries across the world are increasing investments in chip production due to rising demand for semiconductors and ongoing global supply chain shifts. Industry experts believe the new projects could help India strengthen its position in the global electronics market while attracting more technology investments in the coming years.