Suchi Semicon Invests $100 Million Over Three Years in Gujarat.

Gujarat-based Suchi Semicon has commenced semiconductor production without relying on incentives from the central government and aims to invest $100 million (approximately ₹840 crore) over the next three years, the company’s top official announced recently.

Independent Production Strategy

Suchi Group Chairman and founder of Suchi Semicon, Ashok Mehta, stated that although the company has applied for incentives under the Centre’s SPECS (Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors) and the India Semiconductor Mission, they chose not to delay production while awaiting approvals. “We have a robust business plan. Our focus is on doing business, not merely on incentives. The Centre’s approval will follow once we meet their requirements,” Mehta said. The Gujarat government has already approved a 20% incentive for the plant.

Inception and Funding

Mehta revealed that the idea for Suchi Semicon was born during the semiconductor shortage at the height of the COVID-19 pandemic, inspired by Prime Minister Narendra Modi’s call to turn crises into opportunities. Using funds from the company’s textile business and additional investments from friends, family, and a credit facility with Punjab National Bank, the company has built its initial production capacity. “Our investment plan includes anticipated incentives from the Centre, which we are confident of receiving based on our performance,” Mehta added.

Production and Market Focus

Trial production has begun, and components are undergoing client testing. “We already have clients who have placed their requirements. Most of our production will serve overseas clients,” Mehta said. Commercial shipments are expected to start in the first quarter of next year, according to co-founder Shetal Mehta. Testing and approvals for applications vary between two weeks to four months.

Future Plans and Expansion

In the second phase of expansion, Suchi Semicon plans to enter the power semiconductor market as early as the next financial year. The company is in advanced discussions with technology partners and expects to sign a memorandum of understanding soon. “The Centre requires us to have a technology partner and sector experience. We believe our performance will strengthen our case for incentives under the India Semiconductor Mission,” Shetal Mehta said.

The company currently employs 60 people, including industry veterans, and is actively training new staff in preparation for scaling up production. “Semiconductors are the future, with applications spanning industries. For example, a conventional car uses about 600 types of semiconductors, while an electric vehicle requires around 5,500,” Shetal noted.

Industry Confidence in India’s Capabilities

Through its textile business, Suchi Group has established connections across industries, which have helped gain confidence in India’s semiconductor manufacturing capabilities. “With technology demand growing exponentially, the semiconductor industry is poised for significant growth, and we aim to be at the forefront of this transformation,” Shetal Mehta concluded.

HBL