Gujarat-based Suchi Semicon has commenced semiconductor production independently of central government incentives, with plans to invest $100 million over the next three years, according to Ashok Mehta, Chairman of Suchi Group and founder of Suchi Semicon. Although the company has applied for central support under the SPECS scheme and the India Semiconductor Mission, Mehta emphasized that production was not delayed for approvals.
“Our business model is robust and not reliant on incentives. We’ve set up this plant to do business, and we are moving forward. The central approval will come as we meet their criteria,” Mehta said.
The Gujarat state government has approved a 20% incentive for the facility, Mehta revealed. He shared that the decision to enter the semiconductor sector was inspired by Prime Minister Narendra Modi’s call during the COVID-19 pandemic to turn challenges into opportunities. Following extensive research, the company decided to invest in this critical technology sector.
Suchi Semicon has already begun trial production, and its semiconductor components are undergoing client testing. “Most of our production is targeted at overseas clients, and we already have orders placed. Commercial shipments are expected to begin in the first quarter of next year,” said Shetal Mehta, co-founder of Suchi Semicon.
The company has funded its venture through a mix of internal resources from its textile business, support from friends and family, and credit facilities secured from Punjab National Bank. Ashok Mehta noted that the investment plan accounts for potential central incentives, which the company is optimistic about receiving based on performance.
In its second phase of expansion, the company plans to venture into power semiconductors, potentially as early as the next financial year. Discussions with technology partners are also underway, and a memorandum of understanding is expected soon, which will strengthen the company’s profile and support its application for central incentives under the India Semiconductor Mission.
Shetal Mehta explained that the central government requires both a technology partner and industry experience as prerequisites for approval. “Our performance will also be a key factor in securing incentives. We’ve assembled a team of 60 professionals, many of whom have extensive semiconductor experience, and we’re training additional staff to scale up production,” he said.
He added that the growing demand for semiconductors, especially in applications like electric vehicles, will drive future growth. “In a standard car, around 600 semiconductors are used, while an electric vehicle requires about 5,500. As technology adoption increases across industries, semiconductor demand will rise exponentially,” Shetal said.
With its roots in the textile industry, the Suchi Group has leveraged its extensive network to build confidence in India’s semiconductor manufacturing potential. The company is poised to play a key role in reducing India’s dependency on imports in this critical sector.
