Gujarat-based Suchi Semicon has started manufacturing semiconductors at its new chip plant without waiting for incentives from the central government. The company, led by Chairman and Founder Ashok Mehta, has announced an ambitious $100 million (approximately Rs 840 crore) investment plan to expand operations over the next three years.
Ashok Mehta stated that while Suchi Semicon has applied for government incentives under the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and the India Semiconductor Mission, the company is not relying solely on these benefits to move forward.
“We have a solid business plan. Our focus is on building a sustainable business, not just waiting for government approval. The Centre’s incentives will come when we meet their requirements, but our production has already begun,” Mehta said.
Support from Gujarat Government
The Gujarat state government has approved a 20% incentive for the new semiconductor plant. Mehta shared that the idea to venture into the semiconductor industry took shape during the COVID-19 pandemic, a time when there was a global shortage of semiconductors.
“Prime Minister Narendra Modi encouraged businesses to turn challenges into opportunities during the pandemic. After extensive research and consultation with industry experts, we decided to set up a semiconductor factory,” he added.
Backed by Textile Business
Suchi Semicon has drawn on resources from its parent company, Suchi Industries, a well-established textile business. The company also raised funds from family and friends and secured a credit facility through Punjab National Bank to finance the semiconductor venture.
“Our investment plan includes the expected incentives from the central government, which we are confident of receiving based on our performance,” Mehta said.
Focus on International Clients
Most of the semiconductor production will cater to overseas clients, with initial trial production already underway. “We have secured orders from clients who are currently testing our components. Testing timelines vary between two weeks to three or four months, depending on the application,” Mehta explained.
Suchi Semicon’s co-founder, Shetal Mehta, confirmed that commercial shipments are expected to begin in the first quarter of next year. “Once the testing phase is complete, we will start commercial deliveries. By early next year, most applications will be ready for shipment,” she said.
Aiming for Growth in Semiconductor Sector
Suchi Semicon’s entry into the semiconductor industry marks a significant step for India’s efforts to strengthen domestic manufacturing. The company’s initiative aligns with the government’s push for self-reliance in critical sectors like electronics and semiconductors.
With a well-thought-out business strategy and strong support from the Gujarat government, Suchi Semicon is poised to make a notable impact in the global semiconductor market. The company’s commitment to innovation and quality is expected to drive its growth in the years ahead.
Suchi Semicon’s decision to launch its chip manufacturing plant without waiting for government incentives reflects its confidence in its business model and long-term vision. By investing $100 million over three years, the company is positioning itself as a key player in the semiconductor industry, catering to both domestic and international markets.
As India moves towards becoming a global hub for semiconductor manufacturing, Suchi Semicon’s efforts are a promising step in that direction.
