Cabinet Clears ₹3,936 Cr for Two Semiconductor Units

• India approves ₹3936 crore semiconductor manufacturing projects
• Gujarat to host new chip and display units
• Move boosts domestic electronics and semiconductor ecosystem growth

India has taken another significant step toward strengthening its semiconductor ecosystem, with the Union Cabinet approving investments worth ₹3,936 crore for two new semiconductor manufacturing units under the India Semiconductor Mission (ISM). The move reflects the government’s continued push to build domestic chip production capabilities and reduce reliance on imports.

The approved projects will be set up in Gujarat and include a semiconductor fabrication facility and a packaging unit. One of the key highlights is the establishment of India’s first commercial mini/micro-LED display manufacturing unit based on Gallium Nitride (GaN) technology. This advanced facility is expected to play a critical role in producing next-generation display components for applications such as consumer electronics, defence systems, and advanced visual technologies.

The second project involves the development of a semiconductor packaging and testing unit, which will support the assembly and processing of chips for various industries, including power electronics, automotive systems, and industrial applications. Together, the two projects are expected to generate employment for over 2,200 skilled professionals, further strengthening India’s high-tech workforce.

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With these approvals, the total number of semiconductor projects sanctioned under the ISM has increased to 12, with cumulative investments reaching approximately ₹1.64 lakh crore. This expansion highlights the rapid progress of India’s semiconductor ambitions and its efforts to position itself as a global manufacturing hub.

The initiative aligns with the broader “Make in India” and “Aatmanirbhar Bharat” strategies, which aim to enhance domestic manufacturing capabilities across critical sectors. By promoting investments in advanced semiconductor technologies, the government seeks to build a resilient electronics supply chain and support emerging industries such as artificial intelligence, electric vehicles, and telecommunications.

Industry experts view this development as a crucial step toward achieving technological self-reliance. As global demand for semiconductors continues to grow, investments in fabrication, packaging, and advanced materials are expected to play a pivotal role in shaping India’s future in the electronics and high-tech manufacturing landscape.

Overall, the approval underscores India’s commitment to becoming a key player in the global semiconductor value chain while fostering innovation, employment, and industrial growth.