Suchi Semicon eyes international partner for semiconductor device manufacturing

A little known privately held Gujarat-based firm Suchi Semicon became the latest semiconductor firm to establish its Outsourced Semiconductor Assembly and Test (OSAT). Located in Surat, this facility is closer to other major established and upcoming chip facilities including Micron’s assembly and testing facility; a semiconductor fab by Tata Electronics; and a semiconductor unit by Kaynes Semicon.

Suchi Semicon’s OSAT facility is in the process of getting machinery and is expecting that this month will be dedicated to the qualification phase, where the setup is validated to ensure it meets the exact specifications needed to manufacture the device for a particular client. By next month it aims to start commercial production.

“After March, there should be no turning back,” Shetal Mehta, co-founder of Suchi Semicon told TechCircle in an interview.

He said that Suchi Semicon will soon join hands with an international technology partner. While Mehta did not reveal the name of the proposed partner, he said that the company is a domain leader with over 30 years of experience in semiconductor device manufacturing. The announcement of this partnership is expected to happen soon.

“Currently, we have the technology and expertise to manufacture these devices. However, as we look to the future, we plan to expand into producing power devices and other advanced products that may present new challenges. Partnering with an experienced technology provider will not only help us navigate these challenges but also enhance our credibility in the industry,” he added.

Mehta said that the company has identified several buyers who will participate in the trial and qualification stages.

The facility will specialise in chip packaging and testing, receiving wafers from customers worldwide, and dicing and packaging them for use in a variety of devices, including phones, computers, and televisions. Initially focused on legacy devices, the company plans to expand into more sophisticated packaging solutions as it grows.

“Currently, our production capacity is around 300,000 pieces per day. Once the facility is operational and commercial production begins, we plan to expand to multiple production lines to increase output and achieve a target of 3 to 3.5 million pieces per day in 3-5 years. If incentives are received earlier, it would significantly accelerate our timeline,” according to Mehta.

Suchi Semicon’s OSAT facility has been approved for the Gujarat government’s semiconductor incentive plan. The company has also applied for subsidies under the Central Government’s schemes but has yet to get any approval.

The company claims that it will be spending $100 million (about ₹865 crore) over three years. The company has raised funds from friends and family, apart from tying up the Punjab Bank for a credit facility.

“Additionally, we’ve received numerous proposals from private equity firms and professional investors, which we are actively evaluating to determine the best fit for our long-term goals,” Mehta concluded.

Suchi Semicon is promoted by Surat-based textile exporter Suchi Group. Mehta said that he and his father Ashok Mehta, Suchi Group chairman and Suchi Semicon co-founder, decided to foray into the semiconductor industry during the chip supply chain disruption during the pandemic. This was followed by two years of extensive research and consultation with industry experts globally.

In the future, Suchi Semicon will also explore opportunities in the semiconductor design front.