Suchi Semicon inaugurates Gujarat's first OSAT facility

As global demand for semiconductors continues to rise, Indian companies are progressively stepping up to fill the gap traditionally addressed through imports. Suchi Semicon is leading this transformation by establishing Gujarat's first Outsourced Semiconductor Assembly and Test (OSAT) facility, aiming to reduce India's dependence on foreign semiconductors.

According to KNN India, Ahmedabad Mirror, and the Economic Times, India-based Suchi Semicon inaugurated its first OSAT facility on December 15, 2024, in Bagumara village, Palsana taluka of Surat, Gujarat. The company plans to invest INR8.4 billion(US$100.84 million) in the facility, generating 1,200 jobs. The OSAT will have a daily production capacity of 300,000 chips initially before reaching three million chips per day.

Ashok Mehta, founder and chairman of Suchi Industries, expressed confidence that Gujarat would become known as the semiconductor state of India, noting the increasing presence of semiconductor companies in the region.

He revealed that companies from Japan, Korea, Malaysia, and Taiwan have committed to establishing service centers for semiconductor equipment in the state. These centers will provide essential maintenance services for equipment purchased from international companies.

Mehta added that the company conducted extensive research and analysis over two years, visiting 12 countries before completing the plant's construction within one year.

Shetal Mehta, co-founder of Suchi Semicon, explained that they are building a comprehensive semiconductor ecosystem through personnel training, global expert collaboration, and partnerships with leading minds in the semiconductor industry.

During the inauguration, CR Paatil, Union Water Resources Minister of India, highlighted semiconductors as crucial components in electronics manufacturing and drivers of the digital revolution. He noted that Gujarat's entrepreneurs are collaboratively initiating production to supply semiconductors both domestically and globally.

Harsh Sanghvi, the Minister of State for Home and Industries of Gujarat, expressed confidence in Gujarat's capability to fulfill Indian Prime Minister Modi's vision of semiconductor self-reliance. He emphasized Gujarat's consistent leadership in industrial development and innovation.

Building India's semiconductor future

Suchi Semicon's OSAT facility marks a significant milestone in India's semiconductor development, particularly in Gujarat. Earlier in 2024, the Indian government approved four semiconductor projects. Most of these, including Micron's Assembly, Testing, Marking, and Packaging (ATMP) facility, are located in Gujarat and are set to begin mass production in early 2025.

Mona Khandhar, Principal Secretary of Gujarat's Department of Science and Technology, highlighted that Gujarat pioneered semiconductor policy implementation, accepting substantial economic and financial risks while aligning with the central government's strategy. Rather than maintaining an independent approval system, Gujarat follows the central government's lead in semiconductor project approvals.

Khandhar emphasized the state government's commitment to providing reliable infrastructure, including uninterrupted power, water, and gas supply with necessary redundancies for semiconductor plants. She stressed that creating a truly competitive environment requires comprehensive support rather than partial measures.

Source: DIGITIMES Asia, December 2024

Source: Commerce Department of India, December 2024