Without relying on incentives, Suchi Semicon begins production in its Surat factory with a $100M investment, focusing on power semiconductors, global clients, and workforce growth.
Suchi Semicon, a Gujarat-based semiconductor startup, has initiated production in its Surat OSAT facility without relying on the Centre’s incentives. The company plans to invest $100 million (around ₹840 crore) over the next three years, according to its founder and chairman, Ashok Mehta.
Earlier, Suchi had applied for the government’s incentives under the India Semiconductor Mission (ISM) and the SPECS scheme. However, Mehta emphasised that the company’s business strategy is not centred around incentives.
Owing to a solid business plan ahead, he noted that government approval will come once the company meets the required criteria.
The Gujarat state government has granted Suchi Semicon a 20% incentive for its plant. Mehta added that Suchi’s advent in the semiconductor industry began during the COVID-19 pandemic when shortages in semiconductor supply prompted Prime Minister Modi’s call to transform crises into opportunities. Extensive research led to their decision to launch an outsourced semiconductor assembly and testing (OSAT) factory.
Additionally, a portion of the company’s funding came from its textile business, with additional investments raised through friends, family, and a credit facility from Punjab National Bank.
Suchi Semicon has already started trial production, with its components undergoing client tests. Most of the production is aimed at international clients.
Co-founder Shetal Mehta shared that the startup expects to begin commercial shipments of its semiconductors in the first quarter of next year after successful testing, with plans to expand into power semiconductors by the next fiscal year.
It is also in advanced talks with potential technology partners to secure government incentives, as the Centre requires both a technology partner and sector experience for approval under the India Semiconductor Mission.
Suchi Semicon is building a skilled workforce of 60 employees, many with semiconductor experience, to meet the growing demand for semiconductors in automotive and electric vehicles. The company benefits from the Mehta family’s textile business network, which has helped strengthen confidence in India’s semiconductor capabilities.
