Suchi Semicon to invest $100 million in semiconductor production

By Staff Report December 16, 2024 5:04 pm IST

Suchi Semicon has started producing semiconductors without the Centre’s incentive and plans to invest $100 million over three years. The company has applied for the Centre’s incentive under SPECS and India Semiconductor Mission.

Gujarat-based Suchi Semicon has started production of semiconductors without the Centre’s incentive and plans to invest USD 100 million in three years.

Ashok Mehta, Suchi Group Chairman and Suchi Semicon founder, said, “Though the company has applied for the Centre’s incentive under SPECS (Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors) and the India Semiconductor Mission, it does not want to hold on to production for the sake of incentives. We have a foolproof business plan. Our business plan is not primarily for incentives. We have set up a plant to do business. The Centre’s approval will come when we meet their requirements. We have made a USD 100 million (about ₹840 crore) investment plan over three years. The state government has approved 20 percent incentives for the plant.”

Suchi Semicon already has clients who have placed their requirements. The majority of their production will be for overseas clients. They have started trial production some time back, and components are getting tested by clients. Suchi Semicon has plans to get into power semiconductors in the second phase of expansion, which can be next financial year.

Shetal Mehta, co-founder of Suchi Semicon, said, “The commercial shipment of the semiconductors will start in the first quarter of next year. After completion of testing, the commercial shipment will start. Some of the applications where our components will be used take 2 weeks for test and approval, and in some it may take 3-4 months. We expect commercial shipments for most of the applications to start in the first quarter.”

The government is requesting that Suchi Semicon have a robust backup plan to avoid adverse business impacts. A technology partnership will enhance the company’s profile, and the Centre will approve the plant for incentives under the India Semiconductor Mission, provided it meets two conditions: technology partner experience and sector expertise.