The Union Cabinet on Tuesday cleared the last two semiconductor units under the first phase of the government’s semiconductor mission, with an investment $3,936 Crores. The projects will be funded within $Rs 76,000 crore has been allocated for the India Semiconductor Mission 1.0, which will be introduced in 2022.
Both the facilities, which were announced by IT Minister Ashwini Vaishnau during a Cabinet press conference, will be set up in Gujarat.
With these approvals, the government has completed the initial list of projects under ISM 1.0, bringing the total to 12 units and a cumulative investment of $1.65 lakh crore,” Vaishnaw said. The government is now preparing to roll out the next phase, ISM 2.0, which is expected to cost more than $1 lakh crore, HT had earlier reported.
The government is positioning the larger of the two facilities – the Dholera-based Crystal Matrix project – as part of a broader shift in display technologies from LCD to next-generation MicroLED. For decades, the LCD industry was dominated by Japan, South Korea and Taiwan, before China increased its investment and assumed global leadership, Vaishnau said. With LCD now considered a mature technology, the focus has shifted to MicroLED, with India seeking to build an early presence.
the $The Rs 3,068-crore Crystal Matrix facility will manufacture gallium nitride (GaN) chips used in Mini and MicroLED displays, along with advanced packaging (ATMP). These components are used in applications such as large video walls, AR/VR systems, studio production, and specialized defense and medical displays. The project is part of India’s attempt to enter a sector that is still evolving globally, with companies like Sony and Samsung leading the way.
An IT Ministry official said the MicroLED sector could grow at a compound annual growth rate of about 50%, but noted that domestic demand remains limited at present due to rising costs. They added that similar to solar energy, prices fell sharply from approx $10 l $2 per unit, and MicroLED costs are expected to decline as production increases.
The 60-acre factory is expected to produce 72,000 square meters of display panels annually, along with 24,000 sets of RGB GaN chips, and generate about 1,600 direct jobs. The ATMP unit is likely to be operational within 18 months, while the composite semiconductor manufacturing facility is expected to be completed in about three years.
The second project was approved for Suchi Semicon Pvt. Ltd. in Surat, with an investment of Rs $868 crore, includes setting up an OSAT (Outsourced Semiconductor Assembly and Testing) facility, which will manufacture semiconductor packaging components such as lead frames and wire bond packages. These components are widely used in everyday electronics and industrial applications, including air conditioners, televisions, and cell phones.
The Surat facility will have an annual production capacity of 673 million units of small integrated circuits (SOIC) and 360 million units of transistor topology (TO-263) packages. It is expected to create direct employment opportunities for about 630 people. Production in this unit is expected to begin within eight to ten months.
ISM has so far attracted a total investment of Rs $1.65 million crores. Vaishnau said two units – Micron and Kainz – started commercial production earlier this year, and their production capacity has already been fully booked.
“Globally, people wondered whether India would be able to produce semiconductors or not. That debate has now been settled. Our learning curve has been achieved,” he added.
