Gujarat-based Suchi Semicon dispatches debut chip to US customer, to begin commercial production late April

Ashok Mehta, Founder, Suchi Semicon

Suchi Semicon has dispatched its first packaged semiconductor chip to a US-based consumer electronics client for approval, founder Ashok Mehta confirmed. The company is set to commence commercial production in late-April and aims to end the year with a turnover of ₹75-80 crore. 

“This is the first shipment to our US customer for qualification and testing. Our first target is the US, where we have two customers. Following the approval from our buyer, commercial production will start. It will take around two weeks for testing and qualification, and, within three-four weeks, we may start production,” added Ashok Mehta.

The company’s Outsourced Semiconductor Assembly and Test (OSAT) facility was set up in December 2024 in Surat with an initial investment of ₹870 crore. However, before it diversified into the semiconductor industry, the Suchi Group operated one of the largest textile embroidery manufacturing units in India.   

Shetal Mehta, the Co-Founder of Suchi Semicon, added, “Coming from a textile background and getting into semiconductors is amusing to many people. When we wanted to diversify, we researched other businesses and stumbled across semiconductors. We identified a need for local manufacturing because 99 per cent of our semiconductor devices are imported and we lack leverage over semiconductors. So, we recognised this demand and were glad to enter a sunrise sector.”  

Production-ready

The plant’s facilities are fully production-ready, with equipment in place, trial runs completed, skilled personnel onboard and new hires trained. Currently, the plant can produce nearly 1.5 lakh chips per day, with plans to scale up to three million chips daily over the next three-five years. 

“Initially our capacity is not too big, but we can manufacture for these two customers easily. As we expand, we will onboard more customers,” Ashok Mehta said. 

While Suchi Semicon has applied for the Centre’s incentive under the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), it did not hold up its production plans for approval. 

The Gujarat government’s provision of a 20 per cent subsidy on building the infrastructure and machinery has helped it to an extent, the founders shared.  

Published on April 15, 2025