Suchi Semicon starts chip production, investing $100M in 3 years
Gujarat-based Suchi Semicon has started semiconductor production without waiting for central government incentives. The company has announced a $100 million investment plan over the next three years. Suchi Group Chairman and founder Ashok Mehta told PTI that the company isn't delaying production for incentives, having applied for support under the India Semiconductor Mission. The state government has approved a 20% incentive for the plant.
Suchi Semicon's journey and future plans
The decision to enter the semiconductor business was taken during the COVID-19 pandemic when Prime Minister Narendra Modi urged turning crises into opportunities. Suchi Semicon has already bagged clients, mostly overseas, and commenced trial production with components currently being tested. The company intends to diversify into power semiconductors in its second phase, possibly as soon as the next financial year.
Funding and commercial shipments
Suchi Semicon has used funds from its textile business, Suchi Industries, and raised additional capital from friends and family. The company has also established a credit facility with Punjab National Bank (PNB). Co-founder Shetal Mehta announced that commercial shipments are expected to start in the first quarter of next year after testing is completed.
Technology partnership and workforce development
Discussions with technology partners are at an advanced stage, with a memorandum of understanding (MoU) expected soon. This partnership will boost their business profile and help them secure central incentives. The Centre mandates a technology partner and sector experience for incentive approval. Suchi Semicon has a team of 60, including seasoned semiconductor professionals, and is training more staff for future scaling.
