India Cabinet Approves Crystal Matrix GaN Display Fab and Suchi Semicon OSAT Worth Rs 3,936 Crore in Gujarat

Cabinet Greenlights Two New Semiconductor Units: GaN Display Fab and OSAT in Gujarat

The Union Cabinet approved two semiconductor manufacturing proposals on May 5, 2026 under the India Semiconductor Mission (ISM): Crystal Matrix Limited (CML) for a GaN-based Mini/Micro-LED display fab in Dholera, and Suchi Semicon Private Limited (SSPL) for a discrete semiconductor OSAT in Surat. With these approvals, ISM's total sanctioned projects rise to 12, with cumulative investments of around Rs 1.64 lakh crore.

Crystal Matrix Limited: India's First GaN Display Semiconductor Facility

Crystal Matrix Limited will set up India's first commercial compound semiconductor fabrication and ATMP facility in Dholera, Gujarat, manufacturing Mini and Micro-LED display modules using gallium nitride (GaN) technology. This segment powers next-generation screens in consumer electronics, automotive dashboards, AR/VR headsets, and large-format commercial displays. Dholera's inclusion reinforces the Special Investment Region's growing role as a semiconductor cluster, alongside the Tata-PSMC front-end fab under development.

Suchi Semicon Private Limited: Discrete Semiconductor OSAT in Surat

Suchi Semicon will build an OSAT facility in Surat focused on discrete semiconductors — the workhorses of power electronics, automotive controllers, and industrial automation. Discrete chips may lack the visibility of advanced logic nodes, but their shortage during the global chip crisis of 2021-23 paralysed EV production lines and factory floors worldwide. India's rapidly growing EV & manufacturing base creates substantial domestic demand, making local OSAT capacity strategically and commercially valuable.

Investment and Employment

Together, the two units require a cumulative investment of approximately Rs 3,936 crore and will create employment for 2,230 skilled professionals. The government's 50% capital support mechanism underpins both projects, as it does for all ISM-approved schemes. The approvals represent a deliberate diversification of India's semiconductor portfolio — expanding beyond DRAM memory packaging into compound semiconductors, display technology, and discrete power devices, which together form critical building blocks for the country's EV, defence, and AI infrastructure ambitions.