On 5 May 2026, the Union Cabinet approved two more semiconductor units under the India Semiconductor Mission (ISM), with a combined investment of about ₹3,936 crore. Both are in Gujarat, and one of them is in the Dholera Special Investment Region. With these approvals the mission has 12 sanctioned projects across India, and Gujarat is home to six of them.
Gujarat lands 6 of 12 India Semiconductor Mission projects, including a new chip plant in Dholera
A display chip plant in Dholera
The Dholera project is by Crystal Matrix Limited, with an investment of ₹3,068 crore. It is an integrated facility that will both fabricate and assemble Mini and Micro-LED display modules using Gallium Nitride (GaN) technology.
Mini and Micro-LED displays are used in high-end screens, and India does not yet make them at commercial scale. This unit is described as the country’s first. It is expected to create about 630 direct jobs.
An assembly and test unit in Surat
The second approval is a ₹868 crore outsourced semiconductor assembly and test (OSAT) unit by Suchi Semicon Private Limited in Surat. It will package and test discrete semiconductor components, with planned capacity of over 1,033 million chips a year for power electronics, vehicles, industrial automation, and consumer devices.
Together, the two projects are expected to create about 2,230 skilled jobs. Reports describe them as the last two approvals under the first phase of the mission.
Why Gujarat’s share matters
Across all 12 projects, sanctioned investment under the mission is now around ₹1.64 lakh crore. Gujarat holding half of the approved projects puts the state at the centre of India’s plan to build its own chip industry, with units spread across Dholera, Sanand, and Surat.
Semiconductor plants need reliable power, water, logistics, and a skilled workforce. When several of them choose the same state, supporting businesses, suppliers, and housing demand tend to follow over time.
What this adds to Dholera
Dholera already hosts a major semiconductor fabrication project. A second, different kind of chip facility builds on that and widens the region’s industrial base beyond a single company or product.
Dholera was planned as a large industrial region with land, utilities, and connectivity set aside for projects like these. Steady industrial approvals are one of the clearer signs of how it is developing, alongside the airport, expressway, and utility projects that make a planned city usable.
Large projects take years to build, so it helps to look at progress on the ground as well as announcements. Our team can walk you through the area around Aarambh Garden City and the wider region on a guided site visit.
Sources
- Business Today, 5 May 2026: Cabinet clears two new semiconductor units in Dholera, Surat
- YourStory, May 2026: Cabinet boosts semicon push with two Gujarat units, investment over Rs 3,900 Cr
- KNN India: Cabinet approves Rs 3,936 crore semiconductor projects in Gujarat under ISM
- Entrepreneur India: Cabinet approves two semiconductor units worth INR 3,900 Cr in Gujarat