Suchi Semicon makes Pilot US chip shipping, awaiting the government for incentives

Copyright © HT Digital Streams Limit all rights reserved. Companies Suchi Semicon makes us the shipping of pilot chips, awaiting the government’s approval for financial benefits Suchi Semicon co-founder Shetal Mehta said talks are underway with ten potential customers in India and abroad. Summary Suchi Semicon aims to secure the incentives of the government, while a competitive market is dominated by large companies and has plans to have investments scaled up to increase production. Suchi Semicon, promoted by Surat’s Suchi group, appears to be making sluggish but steady progress in the outsourced semiconductor meeting and testing (OSAT) space, after sending his first consignment to the starting operations within five months. “We sent our first pilot base to an American client,” co-founder Shetal Mehta told Mint in an interview and declined to identify the buyer. The boot, which awaits the India Semiconductor Mission (ISM) approval for incentives offered by the government, hopes that this milestone ‘will open’ more doors’. Since he started in December 2024, such has focused on setting machines, compiling Dummy wafers and training staff. “There were no trained people available, so the first three months were about trials and built our workforce,” Mehta said. The first commercial Wafer arrived at Suchi in March and after successful meeting and internal tests, the pilot shipping was sent in mid -April. The US customer will evaluate it in two weeks, after which Suchi plans to start with small group production and gradually scale. Read also | What China’s CEO meets means for India’s top semiconductor shares OSAT businesses packed and test semiconductor chips after manufacturing. While chipmakers produce the silicon wavers, OSAT firms include them in protective housing and test them and prepare them for use in smartphones and cars. Currently, Suchi only handles packaging; According to Mehta, testing is outsourced to a partner nominated by the client. The US client represents an important “anchor” for such. “In semiconductors, one client takes on a leap of faith and it builds credibility with others,” Mehta explained, adding that talks are underway with ten potential customers in India and abroad. Emerging pivot Mehta cut out his work. On the plus side are geopolitical factors such as trading tension and the pressure on diversification of the supply chain, requesting countries to invest in household semiconductor capabilities. As a result, regions such as India appear as potential hubs for semiconductor manufacturing and OSAT services. But he also has his challenges. For one, India has already approved three OSAT projects. Tata Electronics Private Ltd (TPL) invests £ 27,120 crore to build a facility with a production capacity of 48 million units per day in Assam, using indigenous technologies. CG Power and Industrial Solutions Ltd will invest £ 7,584 crore to set up an OSAT facility in partnership with Renesas Electronics (US/Japan) and Stars Microelectronic (Thailand), which targets 15.07 million units per day. MySuru-based Kaynes Technology India Ltd (KTIL) will invest £ 3,307 crore in Gujarat to produce more than 6.33 million chips with Global Technology Partners daily. Foxconn also intends to invest up to £ 424 crore in a semiconductor joint venture with HCL group that includes an OSAT plant. Secondly, the global OSAT market size is expected to grow to $ 92.2 billion by 2034 to $ 46.5 billion in 2025, according to Precedence Research. The Asia-Pacific Ocean Market size was $ 26.3 billion in 2024 and is expected to rise to $ 56.2 billion by 2034. However, this segment is dominated by a few major business-as-technology (Taiwan), which owns about 50%of the market, followed by Amkor Technology (USA) with about 18%, and JCET group (China) at about 12%. The top three control over 80% of the market, making it a highly consolidated industry. Read also | 2025 To be India’s year in semiconductors and data protection: Minister Ashwini Vaishnaw Mehta remains optimistic to win approval of the ISM to get government incentives and support under the Semicon India program, which has an £ 76,000 layout in the country. The scheme includes fiscal support of 50% of capital expenditure to setting up OSAT facilities. ‘Approvals are slow because the industry is not a benchmark. But once approved, the credibility and fiscal support will be a game changer, “he said. The company currently employs about 80 people, including experienced professionals from Southeast Asia with decades of experience. “We are in a challenging space – but where there are problems, there is an opportunity,” he added. Setting up an OSAT facility involves significant investments, although it costs significantly less than building a chip fab. A basic OSAT facility costs $ 100-200 million, while advanced plants can amount to more than $ 500 million (£ 4,000 crore). Most businesses invest in phases, start small and expand the capacity as demand increases. Natural Synergy Suchi is planning an investment of $ 100 million over five years. Mehta pointed out that the project is “a Kapex intensive business, but that it is very self-funded.” He added that “there are no VCs or funds at the moment. We have not looked at the road. But we are open if a great fund wants to invest in this space.” The first £ 100 crore phase was to build the pilot line and core infrastructure. “At the end of this year, we intend to produce 300,000 pieces a day, up to 1 million, then 2 million and eventually 3 million,” Mehta said. He added that he “expects to close approximately 70 crore in the annual turnover this financial year.” Read also | Adani plans to invest $ 3 billion to start Semiconductor Biz via JVS with two Israeli firms, according to Mehta, it also intends to use a ‘supplementary’ business. He argues that although OSAT is capital -intensive, it is not. ‘India already has a strong design base. It is a natural synergy with packaging, “he said, and the plans to invest under £ 5 in this vertical. “We are at the same stage as China 20 years ago,” Mehta said, underlining the potential of India to build a resilient packaging ecosystem. With strategic investment, policy support and global re -alignment of supply chains, he believes that the OSAT sector in India can appear as a strong alternative in the semiconductor value chain. Catch all the corporate news and updates on live currency. Download the Mint News app to get daily market updates and live business news. 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