Synopsis: India’s semiconductor dream is growing fast! The Cabinet has approved two new Gujarat projects by Crystal Matrix Limited and Suchi Semicon Private Limited worth ₹3,936 crore. Along with giants like Micron Technology, Kaynes, CG Power, and Tata Electronics are making massive investments. Find out which companies are leading India’s chip revolution and why this matters for the future.
India is taking another major step toward becoming a global semiconductor manufacturing hub. The Union Cabinet, led by Prime Minister Narendra Modi, has approved two new semiconductor projects in Gujarat under the India Semiconductor Mission (ISM). These projects will bring investments worth around Rs. 3,936 crore and are expected to create more than 2,230 skilled jobs.
The decision is considered very important because semiconductors are used in almost every modern electronic device, including smartphones, electric vehicles, televisions, defence systems, medical equipment, and smart gadgets. With these new projects, India is trying to reduce its dependence on foreign countries and strengthen its position in the global semiconductor industry.
New Cabinet Approves Two Major Semiconductor Projects
The Union Cabinet has approved two new semiconductor projects in Gujarat to strengthen India’s electronics and technology sector. These projects include India’s first commercial Mini/Micro-LED display manufacturing unit based on Gallium Nitride (GaN) technology and a semiconductor packaging and testing facility. The approvals were given under the India Semiconductor Mission.
Crystal Matrix Limited will set up an integrated semiconductor manufacturing facility in Dholera, Gujarat. The company will manufacture advanced Mini/Micro-LED display modules and also provide GaN foundry services. The proposed annual production capacity includes 72,000 square meters of Mini/Micro-LED display panels and 24,000 sets of RGB GaN wafers. These products will be used in TVs, smartphones, tablets, smart watches, car displays, and XR glasses.
Suchi Semicon Private Limited will establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in Surat, Gujarat. The company plans to manufacture more than 1,033 million chips every year. These chips will mainly be used in power electronics, industrial systems, automotive products, and consumer electronics.
The government believes these projects will boost India’s semiconductor ecosystem and help the country become more self-reliant in chip manufacturing. With these approvals, the total number of semiconductor projects under the India Semiconductor Mission has increased to 12, with total investments reaching around Rs. 1.64 lakh crore.
Major Semiconductor Projects Approved in India
India is becoming a major destination for semiconductor manufacturing with several big investment projects approved under the India Semiconductor Mission. Micron Technology is investing Rs. 22,516 crore in Sanand, Gujarat, while Tata Electronics and Taiwan-based PSMC are setting up a semiconductor fab unit in Dholera, Gujarat, with a huge investment of Rs. 91,000 crore. Another major project by CG Power, Renesas Electronics of Japan, and Stars Microelectronics of Thailand is coming up in Sanand with an investment of Rs. 7,600 crore.
Several other companies are also investing in different states across India. Tata Semiconductor Assembly and Test Pvt Ltd is investing Rs. 27,000 crore in Assam, while Kaynes Semicon is setting up a Rs. 3,307 crore project in Gujarat.
Gujarat has emerged as a major hub with projects in Sanand and Dholera, while Assam, Odisha, Punjab, Uttar Pradesh, and Andhra Pradesh are also attracting investments. These projects together are expected to boost chip manufacturing, create jobs, strengthen India’s electronics sector, and reduce dependence on imported semiconductors.
Here are the other top 10 approved Semiconductor Projects in India
| Company | Location | Investment |
|---|---|---|
| Micron Technology | Sanand, Gujarat | ₹22,516 crore |
| Tata Electronics (TEPL) & Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan | Dholera, Gujarat | ₹91,000 crore |
| CG Power, Renesas Electronics Corporation (Japan), & Stars Microelectronics (Thailand) | Sanand, Gujarat | ₹7,600 crore |
| Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) | Morigaon, Assam | ₹27,000 crore |
| Kaynes Semicon Pvt Ltd | Sanand, Gujarat | ₹3,307 crore |
| HCL-Foxconn JV | Jewar, Uttar Pradesh | ₹3,700 crore |
| SicSem Private Limited | Bhubaneshwar, Odisha | ₹2,066 crore |
| 3D Glass Solutions Inc. | Bhubaneshwar, Odisha | ₹1,943 Cr |
| CDIL (Continental Device) | Mohali, Punjab | ₹117 Cr |
| ASIP (Advanced System in Package Technologies) | Andhra Pradesh | ₹468 Cr |
India Semiconductor Mission Driving Growth
The India Semiconductor Mission was launched in 2021 to build a strong semiconductor and display manufacturing ecosystem in the country. The mission provides financial support for investments in semiconductor fabrication, display manufacturing, packaging, and chip design.
To support this vision, the Government of India announced a Rs. 76,000 crore Production Linked Incentive (PLI) scheme to attract investments and encourage semiconductor manufacturing in the country. According to official information, nearly RS. 65,000 crore has already been committed under this scheme. The government is also supporting startups, academic institutions, and technology companies to strengthen India’s semiconductor design and manufacturing ecosystem.
Why Semiconductors Matter So Much
Semiconductors are considered the backbone of modern technology because they power almost every electronic device used in daily life. From smartphones and laptops to electric vehicles, medical equipment, defence systems, and space technology, semiconductors are present everywhere. The global chip shortage during the COVID-19 pandemic clearly showed how important semiconductors are for economic security and industrial growth.
Many countries faced production delays in automobiles and electronics because of semiconductor shortages. As a result, countries around the world are now focusing on building strong domestic semiconductor manufacturing capabilities to secure their supply chains and reduce dependence on a few global suppliers.
India Emerging as a Strong Semiconductor Player
India is rapidly emerging as an important player in the global semiconductor market. The global semiconductor industry is expected to reach nearly USD 1 trillion by 2030, and India wants to become a major contributor to this growth. The country already has strong capabilities in software, chip design, engineering talent, research, artificial intelligence, cloud computing, and electronics manufacturing.
Under the Design Linked Incentive (DLI) scheme, the government has approved several chip design projects to support startups and innovators. In May 2025, Union Minister Ashwini Vaishnaw also inaugurated two advanced semiconductor design facilities in Noida and Bengaluru focused on 3-nanometer chip design technology, marking another important milestone in India’s semiconductor journey.
Conclusion
The Cabinet approval for the two semiconductor projects in Gujarat marks another major milestone in India’s technology journey. With investments worth ₹3,936 crore, the projects by Crystal Matrix Limited and Suchi Semicon will create jobs, strengthen semiconductor manufacturing, and support India’s goal of technological self-reliance.
As global demand for chips continues to grow, India is steadily building its semiconductor ecosystem through government support, private investments, and advanced technology projects. From chip design to fabrication and packaging, the country is now moving closer to becoming an important global semiconductor hub. The latest approvals show that India is no longer only a consumer of technology but is also becoming a strong creator and manufacturer in the semiconductor sector.
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