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Cabinet clears 2 new chip units in Gujarat worth ₹3,936 crore
The Union Cabinet cleared two semiconductor units in Gujarat under the India Semiconductor Mission (ISM) 1.0 with a total investment of ₹3,936 crore. The larger facility, Crystal Matrix in Dholera, is a ₹3,068 crore project for GaN wafers and advanced packaging for Mini and MicroLED displays. The approvals mark the completion of the initial ISM 1.0 slate, with further phases planned.
Why It Matters
India is accelerating its domestic semiconductor capability and aiming to secure a foothold in next-generation display technologies like MicroLED, signaling a strategic shift from older LCD manufacturing to advanced, potentially global-market-leading manufacturing.
Timeline
4 Events
ISM 2.0 planned; next phase outlay over ₹1 lakh crore
May 6, 2026
The government is preparing to roll out the next phase, ISM 2.0, which is expected to have an outlay of over ₹1 lakh crore, as reported earlier by HT.
ISM 1.0 initial slate completed; total units and investment
May 6, 2026
With these approvals, the government has completed the initial slate of projects under ISM 1.0, taking the total to 12 units and cumulative investments of ₹1.65 lakh crore, according to IT Minister Ashwini Vaishnaw.
Crystal Matrix facility (Dholera, Gujarat) approved under ISM 1.0
May 5, 2026
The Crystal Matrix facility, the larger of the two approved units, is a ₹3,068 crore project to manufacture gallium nitride (GaN) wafers used in Mini and MicroLED displays, along with advanced packaging (ATMP). It is slated for Dholera, Gujarat, and is part of a shift from LCD to next-generation MicroLED technologies.
Cabinet clears two new chip units in Gujarat under ISM 1.0
May 5, 2026
The Union Cabinet cleared the last two semiconductor units under the first phase of the India Semiconductor Mission (ISM 1.0), with a total investment of ₹3,936 crore. Both facilities will be set up in Gujarat.