Suchi Semicon, a Gujarat-based semiconductor company, is set to inaugurate the state’s first Outsourced Semiconductor Assembly and Test (OSAT) facility in Surat this November. This milestone represents a significant advancement for India's semiconductor sector and is expected to generate approximately 1,200 jobs through advanced semiconductor assembly and testing operations.

The Surat facility will cover an initial 30,000 square feet and include Class 10k and 100k cleanroom environments. Suchi Semicon has secured a Memorandum of Understanding (MoU) with the Gujarat government, aimed at bolstering job creation and regional economic growth.

Founded in 2023, Suchi Semicon seeks to address a crucial gap in India’s semiconductor supply chain. In a recent interview with News18, company representatives highlighted the importance of government support for the project. “The Gujarat government has committed incentives amounting to 20% of the project cost and has officially sanctioned our venture,” said a company spokesperson.

Additionally, Suchi Semicon has applied for approval under the India Semiconductor Mission (ISM), which could provide a 50% subsidy for capital expenditure. “We are hopeful that our application under the ISM scheme will be approved, allowing us to receive the substantial 50% subsidy,” the executive added.

The company is also forging partnerships with Gujarat Technological University and SVNIT to develop a skilled workforce for the Surat plant. Although the core technical team is currently based in Malaysia, efforts are underway to recruit and train local talent in India. “In the initial phase, we plan to employ around 100 people, with the total number expected to reach between 700 and 1,200 over the entire project duration,” the executive explained. The development will proceed in five phases over more than three years, with hiring aligned with these stages.

Suchi Semicon executives noted a significant gap in India’s semiconductor industry. “While India excels in design, the supply chain often falls short,” they remarked. Although companies like Tata are advancing in semiconductor fabrication, OSAT services are essential for completing the supply chain. “OSAT services, though complex, are simpler compared to fabrication facilities and are crucial for a self-reliant semiconductor ecosystem,” they emphasised.

Technological innovation is central to Suchi Semicon’s strategy. The company will focus initially on legacy discrete products and, in later phases, expand into advanced power devices, which are crucial for automotive applications. “Our first product is a simple, legacy discrete component used in various applications, while phase two will involve advanced power devices with significant automotive potential,” the executive noted.

Suchi Semicon’s venture into the semiconductor field began in 2021, involving extensive research and understanding of the OSAT process. Despite the challenges, funding has not been an issue. The company is eagerly anticipating the factory’s opening in November, with plans to invite notable figures including Gujarat Chief Minister Bhupendrabhai Patel and Union IT Minister Ashwini Vaishnaw.

The launch of Suchi Semicon’s OSAT plant in Surat is poised to strengthen India’s semiconductor supply chain, drive economic growth, and position the country as a key player in the global semiconductor industry.

(news18)