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Cabinet Clears Two Gujarat Chip Plants to Cap ISM 1.0

The decision signals a turn to execution with near-term output targets alongside plans for an ISM 2.0 push into equipment and materials.

Overview

  • India’s Union Cabinet on Tuesday approved two semiconductor projects in Gujarat worth about Rs 3,936 crore under the India Semiconductor Mission, described as the final clearances of phase 1.0 and tied to about 2,230 skilled jobs.
  • Crystal Matrix Limited will build a gallium nitride mini and micro‑LED display facility in Dholera with integrated assembly and packaging, targeting 72,000 square metres of panels and 24,000 sets of RGB GaN wafers each year.
  • Suchi Semicon will set up an OSAT plant in Surat to assemble and test chips, with planned output of roughly 1.033 billion units a year across SOIC and TO packages used in power electronics, autos and industrial gear.
  • Officials said execution has begun, with packaging production expected in about 8 to 10 months and initial display output targeted in roughly 1.5 years.
  • With these approvals, ISM counts 12 sanctioned projects totaling about Rs 1.64 lakh crore, as the government lines up ISM 2.0 to deepen support for chipmaking inputs, tools and design after two earlier units began commercial shipments.