Suchi Semicon to invest $100 million in Gujarat OSAT plant
The plant, with an initial area of 30,000 square feet, will provide essential assembly, testing and packaging services for semiconductor components.
Indian chipmaker Suchi Semicon has started production of semiconductors and plans to invest USD 100 million in three years in its new OSAT facility in Surat in the western state of Gujarat.
The plant, with an initial area of 30,000 square feet, will provide essential assembly, testing and packaging services for semiconductor components, supporting industries such as automotive, consumer electronics and industrial applications, the company said.
It will create up to 1,200 jobs, Suchi said. At full capacity, the facility is expected to produce up to 3 million semiconductor chips daily.
Though Suchi Semicon has applied for the central government’s incentive under SPECS (Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors) and India Semiconductor Mission, it does not want to delay production for the sake of incentives, according to a report by news agency PTI.
“The Centre’s approval will come when we meet their requirements. We have made USD 100 million investment plan over three years,” Suchi Group chairman and Suchi Semicon founder Ashok Mehta said.
He added that the state government in Gujarat had approved 20% incentives for the plant.
Commercial shipment of the semiconductors will start in the first quarter of next year, and most of the business would be for foreign clients, the company said.
“With the government’s focus on increasing semiconductor manufacturing within India, such plants will play a crucial role in reducing dependency on imports, creating jobs, and strengthening our domestic industry,” Union Minister CR Patil was quoted as saying by news agency ANI. “ I congratulate the Suchi Semicon team for their vision and efforts in making this dream a reality, contributing to both Gujarat’s and India’s growth as leaders in technology and innovation.”
