Dholera Emerges as Semiconductor Hub as Cabinet Approves ₹3,936 Cr Investment

India has taken a major step toward becoming a global semiconductor hub as the Union Cabinet approved two new chip manufacturing projects in Gujarat, including Dholera and Surat, with a total investment of over ₹3,936 crore.

Crystal Matrix Limited will set up an integrated semiconductor facility in Dholera focused on compound semiconductor fabrication and ATMP services. This unit will manufacture advanced Mini/Micro-LED display modules and provide GaN-based foundry services. The facility is expected to produce up to 72,000 sq. meters of display panels and 24,000 sets of GaN epitaxy wafers annually. These products will cater to a wide range of applications including TVs, commercial displays, smartphones, automotive displays, and next-generation devices like XR wearables.

Meanwhile, Suchi Semicon Private Limited will establish an OSAT (Outsourced Semiconductor Assembly and Test) facility in Surat. This unit will manufacture over 1,033 million semiconductor chips annually, supporting sectors such as power electronics, automotive, industrial automation, and consumer electronics.

The initiative is expected to generate more than 2,200 skilled jobs and significantly strengthen India’s domestic chip manufacturing ecosystem.

With this approval, the total number of semiconductor projects under the mission has reached 12, attracting investments of around ₹1.64 lakh crore and accelerating India’s journey toward becoming a global electronics and semiconductor powerhouse.

This development positions Dholera as a rapidly growing industrial and semiconductor hub, creating strong long-term investment potential in the region.

Source: https://www.businesstoday.in/technology/news/story/cabinet-clears-two-new-semiconductor-units-in-dholera-surat-investment-tops-rs-3900-crore-529918-2026-05-05