Gujarat has attracted investments worth Rs 1.24 lakh crore across six key semiconductor projects approved under the India Semiconductor Mission. Prime Minister Narendra Modi inaugurated an assembly and test facility in Sanand on Saturday — noting that the country was now building the entire electronics value chain from products and components to semiconductors. State government officials say the upcoming projects are expected to generate more than 50,000 direct and indirect jobs and significantly strengthen India’s efforts to build domestic semiconductor capabilities under the government’s ‘Make in India‘ and ‘Aatmanirbhar Bharat’ (self-reliant) initiatives.

“I have been told that 200 million chips will be produced here every year from now on. I am firmly confident that you will achieve it soon. This confidence also stems from the fact that the Semicon India programme is gaining momentum. STEP BY STEP, BRICK BY BRICK, and now CHIP BY CHIP. We have set a target of manufacturing 500 million chips annually. I am confident that you will achieve this target very soon. I extend my heartfelt congratulations to the entire team at CG Semi,” Modi said.

The CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility inaugurated on Saturday is the latest in a series of production launches by major firms over the past few months. Gujarat’s emergence as a semiconductor centre follows the state’s move to become the first in India to introduce a dedicated semiconductor policy that provides comprehensive support to the sector.

The six projects approved in the state under the ISM are Tata Electronics, Micron Technology, CG Power and Industrial Solutions, Kaynes Semicon, Suchi Semicon and Crystal Matrix. Referring to his earlier announcement that four semiconductor facilities would become operational by 2026, Modi also said production had already begun at three projects within six months. The number of operational facilities is now expected to reach five instead of four by the end of 2026.

Gujarat’s emergence as a semiconductor centre follows the state’s move to become the first in India to introduce a dedicated semiconductor policy that provides comprehensive support to the sector.

The six projects approved in the state under the ISM are-

  • Tata Electronics
  • Micron Technology
  • CG Power and Industrial Solutions
  • Kaynes Semicon
  • Suchi Semicon
  • Crystal Matrix

Operational facilities and near-term ramps

Two of the approved projects, Micron Technology and Kaynes Semicon, have already established Outsourced Semiconductor Assembly and Test facilities at Sanand GIDC. Both facilities were inaugurated earlier this year by Prime Minister Narendra Modi and are now operational, adding immediate capacity for packaging and testing services.

Gujarat Semiconductor Mission: Investment Dashboard

Gujarat Semiconductor Mission: Rs 1.24 Lakh Crore Investment Tracker

TOTAL INVESTMENT
₹1.24 L Cr
6
ISM PROJECTS
50,000+
JOBS EXPECTED
₹1.25 L Cr
ISM 2.0 PROPOSED
1
Micron Technology
Sanand
OPERATIONAL
2
Kaynes Semicon
Sanand
OPERATIONAL
3
CG Power & Ind. Solutions
Jul 5
PROD. STARTS
4
Suchi Semicon
Surat
PILOT LIVE
5
Tata Electronics
Dholera
ADV. FAB BUILD
6
Crystal Matrix
Dholera SIR
CONST. SOON
# Project Facility Type Location Status Key Detail
1 Micron Technology OSAT Sanand GIDC Operational Inaugurated by PM Modi
2 Kaynes Semicon OSAT Sanand GIDC Operational Inaugurated by PM Modi
3 CG Power and Industrial Solutions OSAT Gujarat Commercial production from Jul 5 Chips for autos; exports to Japan, US, Europe
4 Suchi Semicon OSAT (Pilot + Full-scale) Surat Pilot operational; full-scale approved First pilot plant live in Surat
5 Tata Electronics Semiconductor Fab Dholera Advanced construction stage Expected to be India’s first commercial foundry
6 Crystal Matrix Mini/Micro-LED Display Fab Dholera SIR Construction expected shortly India’s first commercial mini/micro-LED unit
Swipe horizontally to view all columns.
Operational Momentum
Micron Technology and Kaynes Semicon have already established OSAT facilities at Sanand GIDC, both inaugurated by PM Modi and now operational — adding immediate packaging and testing capacity. Suchi Semicon’s pilot OSAT plant in Surat is also live, with its full-scale facility approved under ISM.
Near-Term Milestone: CG Semi
CG Power and Industrial Solutions is set to begin commercial production at its OSAT facility from July 5. Union Minister Ashwini Vaishnaw noted the chips will be used in cars, scooters and industrial applications — and notably, will be exported to Japan, America and Europe.
Fabrication & Display: The Big Bets
Tata Electronics is advancing a Fab facility at Dholera in an advanced construction stage, expected to become India’s first commercial semiconductor foundry. Crystal Matrix will build the country’s first commercial mini/micro-LED display fabrication and packaging unit at Dholera SIR, with construction starting shortly.
Supporting Ecosystem
Beyond the six major projects, global and domestic firms including Linde, Taiwan’s TSMT, Japan’s TNSI, Fujifilm, Nippon Express, Germany’s Infineon Technologies and Malaysia’s Hotayi have set up or announced operations, forming an integrated cluster for fabrication, packaging and testing.
Policy Backbone
Gujarat was the first state in India to introduce a dedicated semiconductor policy, aligned with the Centre’s SPECS scheme, supporting the entire value chain — from component manufacturing to fabrication, packaging, testing, materials and equipment — including suppliers of ultra-high-purity gases and specialty chemicals.
What’s Next: ISM 2.0
The Union Finance Ministry has approved an outlay of ₹1.25 lakh crore for ISM 2.0, pending Union Cabinet approval. If cleared, it would deepen incentives and capacity-building nationwide. PM Modi said the Semicon India programme aims for 500 million chips manufactured annually, building on an initial target of 200 million.
Sources: Gujarat state government release · India Semiconductor Mission (ISM) · Union Ministry of Electronics and IT · Data as of July 2026
Express InfoGenIE | Financial Express
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CG Power and Industrial Solutions is set to begin commercial production at its OSAT facility from July 5, marking another near-term milestone for the Gujarat semiconductor ecosystem. Suchi Semicon’s pilot OSAT plant in Surat is already operational, and the company’s full-scale OSAT facility has been approved under the India Semiconductor Mission.

“Tangible production milestones such as the CG Semi commercial start and operational OSAT plants demonstrate that Gujarat is moving quickly from announcements to manufacturing,” the govt release added.

“The chips manufactured at this plant will be used in cars, scooters, and various industrial applications; and—most significantly—chips made in India, at this facility, will be exported to Japan, America, and Europe. Indian technology will earn global acclaim,” said Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, soon after the CG Semi OSAT inauguration.

From large-scale fabrication to advanced display plans in Gujarat

Tata Electronics is advancing construction of a semiconductor fabrication (Fab) facility at Dholera, and the project is described as being in an advanced stage. Officials expect this Fab to become India’s first commercial semiconductor foundry, which would be a key capability in reducing import dependence for chips.

Crystal Matrix has received approval under the mission to establish the country’s first commercial mini- and micro-LED display fabrication and packaging unit at the Dholera Special Investment Region. Construction for this project is expected to begin shortly, expanding the state’s footprint beyond chips to advanced display manufacturing.

Beyond the six major projects, Gujarat’s semiconductor ecosystem is being shaped by the arrival and expansion of supporting industries and allied infrastructure. Several global and domestic companies have already established operations or announced plans in the state, including Linde, Taiwan’s TSMT, Japan’s TNSI, Fujifilm, Nippon Express, Germany’s Infineon Technologies, and Malaysia’s Hotayi. Their presence is helping form an integrated cluster capable of supporting large-scale fabrication, packaging and testing work.

The Gujarat Electronics Policy, aligned with the Government of India’s SPECS (Scheme for Promotion of Electronic Components and Semiconductors), aims to support the entire value chain—from component manufacturing and semiconductor fabrication to packaging, testing, materials and equipment. The policy specifically encourages suppliers of ultra-high-purity gases and specialty chemicals required by semiconductor fabs and OSAT facilities.

Rs 1.25 lakh cr proposed under ISM 2.0 to accelerate India’s semiconductor ambitions

The Union Finance Ministry has recently approved an outlay of Rs 1.25 lakh crore for ISM 2.0, which officials say will be placed before the Union Cabinet for final approval. If approved, ISM 2.0 would deepen incentives and capacity-building measures nationwide, accelerating semiconductor sector growth beyond Gujarat.

“ISM 2.0 will provide the necessary financial incentives and policy clarity to further scale domestic semiconductor manufacturing,” the release said, adding that Gujarat’s proactive state-level measures and national support together create a compelling proposition for investors.

State and central officials have highlighted both economic and strategic benefits from the concentrated investments. Economically, the projects are expected to create employment—more than 50,000 direct and indirect jobs—and stimulate a wide range of supporting industries. Strategically, expanding domestic fabrication, packaging, and display manufacturing reduces dependence on imports and strengthens India’s position in the global semiconductor supply chain.

Through financial incentives, infrastructure support, ease-of-doing-business initiatives, ecosystem-building measures and transparent governance, Gujarat aims to emerge as a globally competitive semiconductor hub that contributes significantly to the objectives of the National Semiconductor Mission. With Rs 1.24 lakh crore already committed to six projects and further support expected under ISM 2.0, the state is positioning itself at the centre of India’s semiconductor ambitions.