Suchi Semicon To Invest $100 Million To Set Up OSAT Plant In Gujarat
Spanning an initial area of 30,000 square feet, the plant will have the capacity to produce up to 30 lakh chips per day.
Surat-based semiconductor manufacturing company, Suchi Semicon Pvt., will be setting up an Outsourced Semiconductor Assembly and Test plant in Gujarat by November 2024.
Spanning an initial area of 30,000 square feet, the plant will have the capacity to produce up to 30 lakh chips per day. The company is making an investment of over $100 million in this facility, which will feature cleanroom environments.
The facility is expected to create up to 1,200 jobs. By leveraging technology and infrastructure, Suchi Semicon seeks to offer competitive pricing and high-quality services in the global semiconductor market.
“India’s semiconductor industry stands at a pivotal moment of growth and transformation. Suchi Semicon’s plant aims to boost India’s semiconductor production and address global demand by localising semiconductor assembly and testing. This approach will reduce supply chain lead times and logistical costs, benefiting companies with design operations in India," said Ashok Mehta, founder of Suchi Semicon.
The company has also signed Memorandums of Understanding with engineering colleges like Sardar Vallabhbhai National Institute of Technology and Gujarat Technological University to support skill development and create a skilled workforce.
The company’s foray into the semiconductor sector is encouraged by the developing ecosystem in India and government. “Earlier for semiconductors, a supporting ecosystem didn’t exist, but now the Indian government is actively fostering one. This growing ecosystem is making it easier to conduct semiconductor business in India. Major players like Micron are key in developing and driving this ecosystem forward,” Shetal Mehta, co-founder of Suchi Semicon, told NDTV Profit.
Suchi Semiconductor has received an incentive of 30% of capex investment from the Gujarat government. It has also applied to get subsidies under the electronics policy, and India Semiconductor Mission—the complete approval of which it awaits.
The facility will serve key sectors such as consumer electronics, automobiles, telecommunications, and wearables, said the company.
