Surat Textile Exporter Invests Rs 8.40 billion in Semiconductor Facility

The company has obtained approval from the Centre for a subsidy under the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) for its pilot project.

Ashok Mehta, Surat’s textile exporter and founder of Suchi Industries, has ventured into the semiconductor industry with plans to invest approximately Rs 8.40 billion in the company’s inaugural chip assembly and testing unit, which is being established in Gujarat.

The company has obtained approval from the Centre for a subsidy under the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) for its pilot project.

Mehta noted that the chip shortage complaints during the COVID-19 pandemic motivated his decision to enter the semiconductor sector. Following research and the establishment of an office in Malaysia, Mehta assembled a team to enter the business. The Gujarat-based Semiconductor Assembly and Testing (OSAT) plant is expected to be operational by November 2024.

The outsourced semiconductor assembly and test (OSAT) facility is being developed under Suchi Semicon in Surat. Mehta revealed that the company plans to invest $100 million over the next three years, with initial capital sourced from internal funds. The project has also received funding approval from Punjab National Bank.

Additionally, US semiconductor firm Micron and Murugappa Group’s CG Power are setting up chip packaging plants in Gujarat, with Micron’s facility anticipated to start operations in December 2024.

Shetal Mehta, Co-Founder of Suchi Semicon, mentioned that the company has already secured a customer for discrete semiconductors used in various electronic devices. The initial production capacity will be 200,000 chips per day starting in November, with plans to scale up to 3 million chips per day.

The company has also partnered with engineering colleges such as SVNIT (Sardar Vallabhbhai National Institute of Technology) and Gujarat Technological University (GTU) to support skill development and build a skilled workforce.

News source: Rediff Moneywiz