Government clears semiconductor projects worth Rs 3,936 crore

Govt on Tuesday cleared two more semiconductor manufacturing projects, with investment of Rs 3,936 crore, pushing forward its ambitions to build a domestic chip ecosystem under the India Semiconductor Mission (ISM).

One of the approvals is for Crystal Matrix (CML), which will set up an integrated facility in Dholera. The unit will focus on compound semiconductor fabrication and assembly, testing, marking and packaging (ATMP), along with manufacturing mini/micro-LED display modules. It will also provide gallium nitride (GaN) foundry services, including epitaxy on six-inch wafers.

The facility is designed with an annual production capacity of 72,000 square metres of Mini/Micro-LED display panels and 24,000 sets of RGB GaN epitaxy wafers. These products are expected to be used across televisions, commercial displays, smartphones, tablets, automotive displays, extended reality devices and wearables, said IT and I&B minister Ashwini Vaishnaw.

The second project, by Suchi Semicon Private (SSPL), will establish an outsourced semiconductor assembly and test (OSAT) facility in Surat. The unit will manufacture discrete semiconductors with a planned capacity of over 1,033 million chips per year. These chips are targeted at applications in power electronics, analog integrated circuits and industrial systems, serving sectors, such as automotive, industrial automation and consumer electronics, said Vaishnaw.

“Cabinet’s approval of new projects under ISM is a part of our efforts towards making India a leader in the global semiconductor value chain, focussing on manufacturing, packaging and advanced materials. India’s advances in the world of semiconductors will boost economic transformation, technological self-reliance and encourage the innovation ecosystem,” PM Narendra Modi said in a social media post.

The projects are likely to generate around 2,230 skilled jobs. With these approvals, the number of projects cleared under the ISM rises to 12, with committed investments of about Rs 1.6 lakh crore.