Gujarat: India has taken another major step toward strengthening its semiconductor manufacturing ecosystem by approving two new chip-related projects in Gujarat. The decision aims to boost domestic production and reduce dependence on imports, while positioning India as a key player in the global semiconductor supply chain.
The approval was granted during a Cabinet meeting chaired by Prime Minister Narendra Modi under the India Semiconductor Mission.
Focus on Self-Reliance in Chip Manufacturing
The government’s broader goal is to reduce import dependency and build a strong domestic semiconductor industry. These newly approved projects are seen as an important part of India’s long-term strategy to achieve Atmanirbhar Bharat in high-tech manufacturing.
₹3,936 Crore Combined Investment Approved
The two projects together involve an estimated investment of around ₹3,936 crore. Officials expect these units to generate over 2,200 skilled jobs, boosting employment in the high-technology sector.
Major Semiconductor Unit Coming Up in Dholera
A large integrated semiconductor facility will be set up in Dholera, Gujarat, by Crystal Matrix.
Key highlights of the project include:
- Mini and micro-LED display panel manufacturing
- Gallium Nitride (GaN) foundry services
- Advanced semiconductor fabrication and packaging unit
The plant will have an annual capacity of:
- 72,000 sq. meters of display panels
- 24,000 sets of RGB GaN wafers
Its products will be used in TVs, smartphones, smartwatches, in-car displays, and extended reality devices.
OSAT Semiconductor Unit Planned in Surat
Another major project will be developed in Surat, Gujarat, by Suchi Semicon.
This facility will function as an Outsourced Semiconductor Assembly and Test (OSAT) unit, focusing on:
- Production of discrete semiconductor chips
- Annual capacity of over 1 billion chips
- Applications in automobiles, industrial automation, power electronics, and consumer electronics
India Semiconductor Mission Gains Momentum
With these approvals, the total number of projects under the India Semiconductor Mission has increased to 12, representing a total investment of around ₹1.64 lakh crore.
According to the government:
- Two projects have already started production
- Two more are expected to begin soon
This reflects steady progress in building a strong semiconductor ecosystem in India.
Growing Semiconductor Design Ecosystem
India’s semiconductor design ecosystem is also expanding rapidly. So far:
- Over 300 academic institutions have been supported
- More than 100 startups are working in semiconductor design
- Dedicated infrastructure support is being provided for innovation
Step Toward Global Semiconductor Leadership
The government has reiterated its focus on making India a significant part of the global semiconductor supply chain. These new Gujarat projects are considered a key milestone in achieving technological self-reliance and strengthening India’s position in advanced electronics manufacturing.
