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Govt clears first phase of semicon mission; two Gujarat units approved
The Union Cabinet approved two semiconductor units under the first phase of the India Semiconductor Mission 1.0 in Gujarat, with a combined investment of ₹3,936 crore. This brings ISM 1.0 to 12 units and ₹1.65 lakh crore in investments, with ISM 2.0 planned to follow with an outlay over ₹1 lakh crore.
Why It Matters
The approvals move India closer to establishing domestic semiconductor manufacturing, including MicroLED-related GaN wafer production and OSAT packaging, and set the stage for a larger ISM phase with substantial investment.
Timeline
6 Events
ISM 2.0 preparations announced
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.
ISM 1.0 slate complete; total 12 units and ₹1.65 lakh crore invested
May 5, 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.
Suchi Semicon Surat OSAT facility details
May 5, 2026
The ₹868 crore OSAT facility in Surat will manufacture packaging components such as lead frames and wire-bond packages. It will have an annual production capacity of 673 million SOICs and 360 million TO-263 packages, and is expected to create about 630 direct jobs. Production is expected to begin within eight to 10 months.
Crystal Matrix Dholera facility details
May 5, 2026
The ₹3,068 crore Crystal Matrix facility will manufacture GaN wafers for Mini and MicroLED displays, and include an ATMP unit. The 60-acre plant will produce 72,000 square metres of display panels annually, with 24,000 sets of RGB GaN wafers and about 1,600 direct jobs. The ATMP unit is expected to be operational within 18 months, while the compound semiconductor fabrication facility is expected to be completed in around three years.
Cabinet approves Crystal Matrix (Dholera) and Suchi Semicon Surat OSAT under ISM 1.0
May 5, 2026
The Union Cabinet cleared the last two semiconductor units under the first phase of ISM 1.0 with an investment of ₹3,936 crore. The facilities are: Crystal Matrix in Dholera (₹3,068 crore) and Suchi Semicon in Surat (₹868 crore).
Micron and Kaynes begin commercial semiconductor production
2026
Two ISM 1.0 units, Micron and Kaynes, have begun commercial production earlier in 2026, and their entire production capacity has already been booked.