Approval Granted for Two New Semiconductor Units; ₹3,936 Crore Cost—What Are the Benefits?
The Central Government has taken another significant step toward boosting semiconductor manufacturing within the country. On Tuesday, the Union Cabinet approved the establishment of two new semiconductor units at a cost of approximately ₹3,936 crore. According to a report by PTI, Union Minister for Information and Broadcasting Ashwini Vaishnaw, while announcing this decision, stated that this initiative would help India secure a strong position in the global semiconductor supply chain and provide fresh momentum to the electronics manufacturing sector.
Ashwini Vaishnaw explained that these projects have been sanctioned under the India Semiconductor Mission, which also includes India’s first commercial Mini/Micro-LED display facility, based on GaN (Gallium Nitride) technology.
Plant to be Set Up in Gujarat
According to reports, both of these semiconductor units will be established in Gujarat. These facilities are expected to provide renewed strength to the electronics manufacturing and high-tech industries. Additionally, these projects will generate employment opportunities for approximately 2,230 skilled professionals. Under the first of these projects, Crystal Matrix Limited will set up an integrated facility in Dholera, Gujarat, where a compound semiconductor fabrication and ATMP (Assembly, Testing, Marking, and Packaging) unit will be established. This facility will focus on the manufacturing of Mini and Micro-LED display modules.
Number of Approved Semiconductor Projects Rises to 12
In the second project, Suchi Semicon Private Limited will establish an OSAT (Outsourced Semiconductor Assembly and Test) facility in Surat, where discrete semiconductors will be manufactured and tested. With these two new approvals, the total number of sanctioned semiconductor projects in India has risen to 12. Consequently, the total investment under this mission in the country has reached approximately ₹1.64 lakh crore, a development expected to give India’s semiconductor sector a strong competitive edge on the global stage. What will be the benefits?
Reduced dependence on imports: Currently, India imports the majority of its semiconductors. The establishment of new manufacturing units within India will reduce this dependence, thereby saving foreign exchange.
Economic Growth and Investment: The semiconductor sector is attracting large-scale investment. It is estimated that, by 2030, this will propel the country toward an estimated market size of $110 billion.
Employment and Skill Development: The semiconductor industry is expected to generate over one million skilled jobs across manufacturing, design, and ancillary services, helping to bolster the availability of local talent through initiatives such as ‘Chips to Start-up’.
