On Tuesday, the Union Cabinet gave the green light to the establishment of two new semiconductor manufacturing plants in India, including a potential first-of-its-kind commercial display facility. This decision marks a significant advancement in New Delhi’s efforts to enhance its semiconductor manufacturing capabilities. These plants represent the final approvals granted under the initial phase of the Rs 76,000 crore India Semiconductor Mission (ISM), following the earlier sanctioning of ten other projects.
Crystal Matrix Ltd (CML) is set to develop an integrated facility in Dholera, Gujarat, dedicated to the fabrication and assembly of compound semiconductors utilizing Gallium Nitride (GaN) technology. This facility will manufacture Mini and Micro-LED display modules and also provide foundry services for GaN applications.
The products produced at this facility will be utilized in various applications, including large displays for televisions and commercial signage, medium-sized displays for tablets and smartphones, in-car displays, as well as micro-displays for extended reality (XR) glasses and smartwatches. The project’s estimated cost amounts to Rs 3,068 crore, with the government covering approximately half of the capital expenditure through its incentive program.
In addition, Suchi Semicon Pvt Ltd (SSPL) plans to establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in Surat, Gujarat, with an investment of Rs 868 crore. This facility aims to produce discrete semiconductors with a projected output of one billion chips annually. The primary applications for these semiconductors will include power electronics, analog integrated circuits, and industrial systems, catering to markets such as automotive, industrial automation, and consumer electronics.
With the approval of these two facilities, the total number of sanctioned projects under the ISM has now reached 12, aggregating investments of approximately Rs 1.64 lakh crore.
Initiated in 2021 with a budget of Rs 76,000 crore, the first phase of the ISM was designed as a government-led initiative to develop a comprehensive semiconductor ecosystem encompassing fabrication, packaging, design, and display manufacturing.
The government is currently in the process of formulating the next phase of the program, potentially approving a scheme with a budget of around $11 billion, according to previous reports by The Indian Express. However, the focus of this revised initiative may shift. While the initial ISM concentrated on attracting semiconductor manufacturing infrastructure to India, the upcoming ISM 2.0 is expected to provide enhanced support for ancillary sectors such as gases, chemicals, and capital goods.
Furthermore, ISM 2.0 may include a more pronounced emphasis on design-related initiatives and could link incentives to the market capital that companies are able to secure.
Soumyarendra Barik, a Special Correspondent for The Indian Express, specializes in the intricate relationship between technology, policy, and society. With over five years of experience in journalism, he is a prominent voice in exploring how digital changes affect the everyday lives of Indian citizens.
Barik’s reporting focuses on various aspects of the tech landscape, including the rights and conditions of gig economy workers, the implications of tech policy and regulation, and the challenges related to digital rights and internet access in India.
Renowned for his thorough and data-informed journalism, Barik often engages in immersive reporting. A notable instance involved him shadowing a food delivery worker for an extensive period, highlighting the low earnings and physical challenges faced in the profession, thus providing an authentic perspective often overlooked in tech journalism.
Outside of his professional endeavors, Soumyarendra is passionate about horology, closely follows Formula 1 racing, and is a dedicated football enthusiast.
For more stories by Soumyarendra Barik, click here.
