Cabinet Approves Crystal Matrix and Suchi Semicon — ISM Reaches 12 Projects, ₹1.64 Lakh Crore
The Union Cabinet approved two new semiconductor projects on May 5, 2026 — Crystal Matrix (an integrated compound semiconductor fab) and Suchi Semicon (an OSAT facility in Surat, Gujarat) — bringing total ISM-approved projects to 12 with cumulative investments of ₹1.64 lakh crore.
Crystal Matrix is India's first integrated compound semiconductor fab — targeting SiC (Silicon Carbide) and related compound materials used in EV powertrains, power electronics, and defence applications. This is a category distinct from silicon logic fabs like Tata Dholera; compound semiconductors serve specialised, high-value markets where India currently has near-zero domestic supply.
Suchi Semicon Private Limited (SSPL) will set up an OSAT facility in Surat, Gujarat, with a proposed production capacity of 1,033.20 million chips per annum. Target applications include power electronics, analog ICs, and industrial systems — serving automotive, industrial automation, and consumer electronics markets.
Crystal Matrix's compound semiconductor focus is significant for Punjab specifically: CDIL (Continental Device India Limited) in Mohali was already ISM-approved for SiC device expansion in August 2025 and is India's first SiC manufacturer. Crystal Matrix entering the same compound semiconductor space confirms that this is a real, funded segment — not a speculative one. Institutions with materials science, chemical engineering, or power electronics programmes should note that compound semiconductor manufacturing requires a different talent profile from silicon ATMP or logic fab work.