Hindustan Times reported on 6 May 2026 that the Union Cabinet had cleared the last two semiconductor units under the first phase of the India Semiconductor Mission, with a combined investment of Rs 3,936 crore. The projects will be funded under the Rs 76,000 crore outlay approved for the mission launched in 2022. Information Technology Minister Ashwini Vaishnaw said both facilities would be set up in Gujarat. With these approvals, the initial slate under the mission reached 12 units, with cumulative investments of around Rs 1.64 lakh crore. The larger approval is the Rs 3,068 crore Crystal Matrix project at Dholera, positioned around the shift from mature liquid crystal display technology to next-generation micro light-emitting diode displays. The facility will manufacture gallium nitride wafers used in mini and micro light-emitting diode displays, along with advanced assembly, testing, marking and packaging. These components are used in large video walls, augmented and virtual reality systems, studio production, and specialised defence and medical displays. The 60-acre plant is expected to produce 72,000 square metres of display panels annually, along with 24,000 sets of red-green-blue gallium nitride wafers, and create about 1,600 direct jobs. Its packaging unit is likely within 18 months, while the compound semiconductor fabrication facility may take around three years. The second approval is Suchi Semicon's Rs 868 crore outsourced semiconductor assembly and test facility at Surat. It will make lead frames and wire-bond packages used in electronics, with annual capacity of 67.3 crore small-outline integrated circuits and 36 crore transistor-outline packages. Production there is expected within eight to 10 months and may create around 630 direct jobs.
Hindustan Times reports Cabinet clearance for two Gujarat semiconductor units worth Rs 3,936 crore, completing the first phase slate of India Semiconductor Mission projects
Hindustan Times reported on 6 May 2026 that the Cabinet cleared two Gujarat semiconductor units worth Rs 3,936 crore. The approvals complete the first-phase slate of the India Semiconductor Mission at 12 units and around Rs 1.64 lakh crore cumulative investment. The projects include a Dholera display-focused facility and a Surat outsourced assembly and test unit.
Key facts
- The Cabinet cleared two semiconductor units in Gujarat with a combined investment of Rs 3,936 crore.
- The approvals complete the initial slate of the India Semiconductor Mission at 12 units.
- Cumulative investment under the mission reached around Rs 1.64 lakh crore.
- The Rs 3,068 crore Crystal Matrix project at Dholera will focus on gallium nitride wafers for mini and micro light-emitting diode displays.
- The Dholera plant is expected to create about 1,600 direct jobs and produce 72,000 square metres of display panels annually.
- The Rs 868 crore Suchi Semicon facility at Surat will make packaging components such as lead frames and wire-bond packages.
- The Surat facility is expected to start production within eight to 10 months and create around 630 direct jobs.
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What was the combined investment approved for the two Gujarat semiconductor units approved by the Cabinet on 5 May 2026?
The two newly cleared Gujarat units together involve Rs 3,936 crore. Rs 76,000 crore is the mission outlay, Rs 1.64 lakh crore is cumulative investment under the mission, and Rs 868 crore is the Surat unit's investment.
Source: Hindustan Times
Frequently asked questions
What did the Cabinet clear?
It cleared two semiconductor units in Gujarat with a combined investment of Rs 3,936 crore.
How many units are now in the initial mission slate?
The approvals take the initial slate to 12 semiconductor units.
What is the Dholera project focused on?
The Crystal Matrix project will make gallium nitride wafers for mini and micro light-emitting diode displays and advanced packaging.
What will the Surat facility produce?
It will produce semiconductor packaging components such as lead frames and wire-bond packages.
What is the expected employment from the two units?
The Dholera unit may create about 1,600 direct jobs, while the Surat unit may create around 630.
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