Gujarat-based semiconductor packaging company Suchi Semicon is set to begin commercial production this month with an ambitious target of producing and packaging 150000 chips per day. This initiative marks the company’s entry into large-scale chip production as it aims to ramp up its capabilities over the next few months. According to Ashok Mehta, Managing Director of Suchi Semicon plans to reach a production level of 3-4 million chips daily after receiving upgraded machinery in the next three to four months.
The company is also considering future expansion into forward or backward integration once it achieves the target of 3-4 million. If the company opts for forward integration, it plans to venture into the manufacturing of printed circuit boards (PCBs). This move could further enhance the company’s capabilities in the semiconductor value chain.
Although Suchi Semicon has begun its operations without waiting for incentives under the government’s “India Semiconductor Mission” (ISM), Ashok Mehta expressed confidence that the company will receive the necessary approvals and support from the central government. The ISM initiative which has already approved five applications for chip packaging and fabrication units has been a key driver for the growth of semiconductor manufacturing in India.
The company is investing up to ₹850 crore to establish its OSAT (Outsourced Semiconductor Assembly and Test) facility, having already invested ₹100 crore in the pilot line. Additionally, Suchi Semicon has signed a technology-transfer agreement with Philippines-based Fastech, which will provide expertise and support for the next three years. To ensure skill development, the company is hiring experts from Malaysia and offering training programs in partnership with Indian universities.
