Ever since India embarked on its journey into semiconductor manufacturing, Outsourced Semiconductor Assembly and Test (OSAT) and Assembly, Testing, Marking, and Packaging (ATMP) plants have been considered ideal entry points for the industry.
Several companies have announced plans to establish operations in this sector, and Suchi Semicon is among the latest entrants. Speaking to Digitimes Asia, Shetal Mehta, co-founder of Suchi Semicon, said it will initially focus on legacy packaging before transitioning to advanced packaging methods.
"Right now, we'll start with legacy packages," Mehta said. "When starting something new, it's important to be comfortable with what you can 100 percent deliver. India is a newborn in this field, and we carry the reputation of India with us. Our technical team is capable of manufacturing more complex devices, but starting with traditional packaging is a sensible business decision. We'll move to advanced packaging as we progress."
Progress in Gujarat
The company has already established its cleanroom facility and is in the process of setting up the remaining infrastructure in Gujarat. Equipment is scheduled to arrive in October, with operations expected to commence by the end of November.
"Once the equipment arrives, it takes some days to set up, train people, and align the machines," Mehta revealed. "The factory work is done, and the cleanroom is in process. November is a good target for us."
Surat, the city where Suchi Semicon is setting up its operations, offers strategic advantages due to its rapid growth and developing semiconductor ecosystem.
"Surat is one of the cleanest and fastest-growing cities in India. Availability of talent isn't a challenge," Mehta explained. "It aligns with our belief that the semiconductor ecosystem is being built in Gujarat. This industry thrives where the ecosystem exists. We're speaking to equipment vendors willing to move to Gujarat and set up their base. Since Suchi is in Gujarat, other companies are also planning to establish offices there. This proximity means that if we need equipment services or face breakdowns, help is not more than six hours away. That's a significant advantage."
Pursuing strategic partnerships
Partnerships are a key focus for Suchi Semicon as it enters the semiconductor sector. Coming from a textile background, the company recognizes the benefits that a joint venture could bring, especially in technology sharing and market reach.
"Partnership is something we're aggressively looking for," Mehta stated. "We come from a textile background, and while our team is technically strong—with members having 30 years of experience—the pros of a joint venture are significant. We're actively seeking a joint venture."
The company is in discussions with several international firms to establish a collaborative partnership.
"We have spoken to and are in discussions with a few companies outside India," Mehta added. "These things take time—it's like a marriage. You need to ensure that visions and thought processes are aligned. We're still talking to companies and are open to approaches from good companies that align with our goals. Quality is our priority."
Building a robust technical team
Suchi Semicon boasts a technical team capable of independently manufacturing semiconductor devices. However, the company acknowledges that a technology partner could enhance its capabilities in sales, reliability, and reputation.
"Our technical team is capable of manufacturing the devices on their own," Mehta noted. "However, getting a technology partner is advantageous. We're looking for a good, reliable company in this area. A good technical partner boosts sales, reliability, reputation, and helps in setting up manufacturing processes. We're open to partners from the U.S., Taiwan, Singapore—anywhere—as long as they align with our vision of building an Indian OSAT company."
Self-funded initial phases with future expansion plans
Regarding the company's development timeline and funding strategy, Mehta highlighted that Suchi Semicon is proceeding independently in its initial phases.
"We are in the approval stage. However, unlike some companies, we are not waiting for government subsidies to start," she said. "Our first phase is self-funded, and we're moving ahead with our own funds. Probably in the second or third phase, we might go for government support. But initially, the company's progress will be self-funded."
The company has outlined a comprehensive plan spanning five phases over approximately three to five years.
"We've planned five phases over approximately three to five years," Mehta elaborated. "The first phase is the pilot line, where the whole building will be ready, but we'll start with pilot equipment to showcase our capabilities to customers. In the second phase, we'll introduce a different product line from our first and eventually grow each category as we decide."
