On Wednesday, May 6, 2026, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved two landmark semiconductor projects under the India Semiconductor Mission (ISM). With a combined investment of ₹3,936 crore, these projects push India into the high-frontier of Compound Semiconductors and mass-scale packaging.
These approvals bring the total number of projects under the ISM to 12, with a staggering cumulative investment of ₹1.64 lakh crore.
1. Crystal Matrix Limited (CML): India’s First GaN Display Hub
Crystal Matrix will establish an integrated fabrication and ATMP (Assembly, Testing, Marking, and Packaging) facility in Dholera, Gujarat. This is a breakthrough for India’s electronics value chain, focusing on Gallium Nitride (GaN) technology.
- Technology Focus: GaN-on-Sapphire/Silicon for Mini and Micro-LED displays.
- Capacity:
- 72,000 sq. meters of Mini/Micro-LED Display Panels annually.
- 24,000 sets of RGB Epitaxy Wafers.
- Foundry Services: CML will also operate as a GaN foundry, providing epitaxy services on 6-inch wafers for third-party designers.
Application Spectrum:
| Segment | Use Cases |
| Large Scale | High-end TVs and commercial digital signage. |
| Medium Scale | Smartphones, tablets, and automotive “smart” cockpits. |
| Micro Scale | Extended Reality (XR) glasses and next-gen smartwatches. |
2. Suchi Semicon Private Limited (SSPL): Scaling OSAT in Surat
Suchi Semicon is set to establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in Surat, Gujarat, specifically targeting the high-volume discrete semiconductor market.
- Production Volume: 1,033.20 million chips per annum (over 1 billion units).
- Focus Area: Discrete semiconductors, including power transistors and diodes.
- Market Verticals:
- Automotive: Power modules for Electric Vehicles (EVs).
- Industrial: Automation systems and analog ICs.
- Consumer: Power management for home appliances.
The Evolving ISM Ecosystem (May 2026 Status)
The momentum of the India Semiconductor Mission has reached a critical “tipping point” where policy is translating into physical shipments.
- Total Projects: 12 approved units.
- Execution Status: 10 projects are currently under various stages of construction or installation.
- Commercial Milestone: Two projects have already commenced commercial shipments from India, with two more expected to go live by Q3 2026.
- Design Support: The physical manufacturing is being complemented by a “Design-Led” surge, with 104 startups and 315 academic institutions currently utilizing government-funded EDA (Electronic Design Automation) tools.
Strategic Rationale: Why Compound Semiconductors?
The approval of the CML project highlights India’s shift toward Compound Semiconductors (GaN/SiC). Unlike traditional Silicon, GaN offers:
- Higher Efficiency: Essential for fast-charging and EV power electronics.
- Superior Brightness: Critical for Micro-LED displays that need to be visible in direct sunlight (e.g., AR glasses).
- Heat Resistance: Allowing for smaller, more compact device architectures without complex cooling.