India approves first Mini/MicroLED fab; can Crystal Matrix deliver on its big semiconductor promise?

The Union Cabinet this week approved what it described as India’s first commercial mini and micro light-emitting diode LED display manufacturing facility, to be built at Dholera, Gujarat, by Hyderabad-based Crystal Matrix Ltd (CML) under the India Semiconductor Mission (ISM). 

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Alongside Crystal Matrix, the government also approved Surat-based Suchi Semicon Private Ltd outsourced semiconductor assembly and test (OSAT) facility focused on power and automotive chips. 

Mini and micro-LEDs are semiconductor electronic components that are smaller, brighter and more energy-efficient than conventional LED panels. These next-generation display technologies are increasingly finding applications in premium televisions, smartwatches, AR/VR devices, automotive dashboards and wearables. 

According to the government announcement, the proposed facility will use Gallium Nitride (GaN) technology and target an annual production capacity of 72,000 square metres of display panels and 24,000 RGB wafer sets. 

Small balance sheet, big ambition

While the project marks another milestone in India’s semiconductor push, Crystal Matrix’s finances highlight the execution challenge for this high-tech project.

According to Ministry of Corporate Affairs (MCA) records sourced from Tofler, the company reported revenue from operations of Rs 1.07 crore in FY25, up from Rs 53 lakh a year earlier. Profit after tax stood at Rs 1.12 lakh. 

The company’s fixed assets largely comprised furniture, office equipment, computers, air conditioners, and a printer, with a combined net book value of Rs 1.32 lakh as of March 31, 2025. The filings did not disclose semiconductor manufacturing machinery, cleanroom infrastructure or GaN fabrication equipment. 

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Its authorised share capital was increased to Rs 10 crore during FY25, while paid-up capital stood at Rs 2.21 crore. 

The filings also show that Crystal Matrix had no foreign exchange inflow or outflow during the period. Any GaN display fab would require imported materials and precision fabrication machinery almost entirely sourced from Taiwan, Japan and Germany.

The company described its business as the “manufacture and designing of LED, LCD and other display systems,” without explicitly referencing GaN, Mini LED, MicroLED or semiconductor fabrication activities in its filings. 

Business Today has sent queries to Crystal Matrix Ltd. The story will be updated once the company responds.

Who owns Crystal Matrix?

Shareholding disclosures show Hyderabad-based Medha Servo Drives Private Limited as the single-largest shareholder with a 26% stake. 

Other shareholders include UMC Holdings LLP with 10.18%, MLAV Tech LLP with 9.99%, Managing Director Eda Venkata Krishna Reddy, Maganti Chaitanya Pavan and Atluri Venkataram with 9.25% each, Maganti Usha Rani with 9%, and Whole-time Director Murahari Raghupatruni with 5.92%. 

Medha Servo Drives, founded by Yugandhar Reddy Yedavalli, is known for railway and industrial electronic systems and also does not have a prior background in semiconductor manufacturing.

According to data from the Association for Democratic Reforms, Medha Servo Drives contributed Rs 35 crore to the Prudent Electoral Trust in FY23. The trust distributed funds to multiple political parties, with the Bharatiya Janata Party receiving the largest share. 

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No semiconductor history, but key partners are on board

While Crystal Matrix currently does not have a visible semiconductor manufacturing track record, the company has two listed South Korean technology partners: Lumens, an LED technology specialist, and Soft-Epi, a GaN epitaxy company. 

To be sure, the company’s key management and advisory team appear to be taking shape around semiconductor manufacturing expertise. Chairman MV Gowtama is the former Chairman and Managing Director of Bharat Electronics Limited (BEL). Ankineedu Velaga, an advisor to the company, brings over 35 years of experience in semiconductor fabrication operations, while Dr Inseong Cho, Head Tech GaN Fab, specialises in GaN epitaxial growth. Former Samsung executive Dr Taihong Jeong is also among the advisors associated with the project.

“Soft-Epi gives Crystal Matrix the physics advantage, epitaxy and RGB, while Lumens provides the system advantage, display and IP. Together, they make the project credible,” said Ashwath Rao, industry analyst and researcher at Counterpoint Research told Business Today. 

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Still, Rao said that credibility and commercial readiness are not the same.

“High-volume manufacturability still needs to be proven, and competing with global giants will require massive capacity, with yield improvements along the learning curve being critical to success,” he said.  

India currently does not have a domestic supply chain for LED-grade GaN substrates or GaN-on-sapphire epiwafers, key materials required for Mini and MicroLED manufacturing. 

Why the project matters

Despite the scale of the execution challenge, industry experts say India’s timing could work in its favour because the MicroLED market is still at an early stage globally.

“MicroLED is early-stage, not yet consolidated. This gives India a timing advantage to enter before the market structure is locked and will give India entry into next-gen display technology,” Rao said, adding that the strategic importance extends beyond display panels alone.

“Epitaxy capability will become a multi-industry asset. Owning GaN growth will create a foundation for LEDs, power GaN, and photonics, which is a high-value, defensible IP layer,” he added. 

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If executed successfully, the project could position India in emerging high-value segments such as augmented and virtual reality microdisplays, automotive displays, wearables and large-format commercial screens rather than legacy display markets, he added. 

Execution remains the real test

Commercial-scale GaN display manufacturing requires expensive infrastructure including Metal-Organic Chemical Vapour Deposition (MOCVD) reactors, cleanrooms, testing systems and mass-transfer equipment, investments that typically run into hundreds or even thousands of crores. 

It is worth noting that under the ISM’s pari-passu funding structure, government subsidies are released in proportion to the company’s own capital expenditure. That means promoters must first deploy significant capital before receiving government support. 

Rao said the company’s investor and partner ecosystem could partially reduce execution risk.

“There are other strategic investors supporting the facility. Equity participation by Medha and KPC Project Ltd will significantly de-risk execution and manufacturing readiness,” he said. 

At the same time, Rao stressed that funding alone would not determine the outcome, adding that “the project’s success will ultimately hinge on semiconductor technology partners and yield learning, not on these industrial partners.”

Must read: Micron’s Sanand plant puts India on the chip map, now the hard part begins for the country

India’s semiconductor push expands

The India Semiconductor Mission now has 12 approved projects, including Crystal Matrix and Suchi Semicon, with a total committed investment of Rs 1.64 lakh crore. 

Launched in 2021, ISM 1.0 was designed as a state-backed initiative to develop India’s full semiconductor value chain, from chip fabrication, assembly and testing, display manufacturing, compound semiconductors, and chip design.

At the centre of India’s ambitions is Tata Electronics’ semiconductor fabrication plant in Dholera, Gujarat, being developed with Taiwan’s PSMC as the technology partner. The facility, India’s first commercial semiconductor fab, is expected to manufacture 50,000 wafers per month across 28nm to 110nm process nodes.

Micron Technology’s assembly and testing facility in Sanand became the first project approved under ISM in 2023. Earlier this year, the US memory-chip giant began commercial production at the plant, making it India’s first operational semiconductor packaging facility under the programme.

Tata Electronics is also building a Rs 27,000 crore semiconductor assembly and testing plant in Jagiroad, Assam. The facility is expected to produce 48 million chips per day.

In Uttar Pradesh, the HCL-Foxconn joint venture is setting up a Rs 3,700 crore OSAT facility in Jewar focused on display driver chips, with a planned production capacity of 20,000 wafers per month.

Kaynes Semicon started commercial operations at its Rs 3,300 crore OSAT plant in Sanand in March 2026. CG Power, along with Renesas Electronics and Stars Microelectronics, is developing another OSAT facility in Sanand with an investment exceeding Rs 7,600 crore.

In Odisha, SiCSem is setting up a Rs 2,066 crore ATMP facility focused on silicon carbide semiconductor devices. The state is also set to host India’s first advanced 3D chip packaging facility through US-based 3D Glass Solutions and its Indian subsidiary, backed by investors including Intel.

Meanwhile, Advanced System in Package Technologies is building a semiconductor manufacturing facility in Andhra Pradesh under a technology partnership with South Korea’s APACT Co. Ltd, with an annual production capacity of 96 million units.

Continental Device India is also expanding its Mohali operations to manufacture high-power semiconductor components, including MOSFETs, IGBTs, Schottky diodes, and silicon carbide devices.