Cabinet Approves Two New Semiconductor Units Worth Rs 3,936 Crore in Gujarat

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New Delhi, MAY 7 (APAC Media): The Centre has approved two new semiconductor-related projects in Gujarat to further strengthen domestic chip manufacturing and reduce dependency on imports. The proposals were cleared during a Cabinet meeting chaired by Prime Minister Narendra Modi.

Investment Worth Rs 3,936 Crore Expected

Together, both the semiconductor units will involve an estimated investment of around ₹3,936 crore. Officials said the units are likely to create more than 2,200 skilled jobs, particularly in the high-technology and electronics sectors.

The approvals are also expected to attract long-term investments in chip manufacturing and further strengthen India’s semiconductor ecosystem.

🔸 #Cabinet approves 2⃣ more semiconductor manufacturing units with cumulative investment of more than ₹ 3,900 crore
🔸 The facilities are expected to generate cumulative employment for 2,230 skilled professionals
🔸 #Semiconductor ecosystem in the country would get a… pic.twitter.com/fo1O1aRKsq
— PIB India (@PIB_India) May 5, 2026

Semiconductor Facility to Come Up in Dholera

One of the major projects will be developed in Dholera, Gujarat, by Crystal Matrix. The facility will focus on semiconductor fabrication, packaging, and advanced display technologies.

The plant will manufacture mini and micro-LED display panels as well. The products are expected to be used in televisions, smartphones, smartwatches, vehicle displays, and extended reality devices.

New OSAT Unit Planned in Surat

The second project will be set up in Surat by Suchi Semicon. The unit will operate as an Outsourced Semiconductor Assembly and Test (OSAT) facility.

It will focus on manufacturing different types of semiconductor chips with an annual production capacity of more than one billion chips. These chips are expected to support sectors such as automobiles, industrial automation, power electronics, and consumer electronics.

India’s Push for Domestic Supply

With the latest approvals, the total number of projects cleared under the India Semiconductor Mission has gone up to 12, with a combined investment of nearly ₹1.64 lakh crore.

Under the India Semiconductor Mission, more than 300 academic institutions have received support, while over 100 startups are currently working in semiconductor design and innovation.