Semiconductor Industry is Emerging as Sunrise Sector: Shetal Mehta

Suchi Semicon plans to invest $100 million into its recently launched OSAT plant and aims to build a self-reliant semiconductor ecosystem in the country.

As India accelerates its push towards becoming a global hub for semiconductor production, a lot of players are leading the charge. With strong government support and a dynamic, evolving industry, India is poised to become a key player in the global electronics supply chain.

Aligning with India’s growing ecosystem, Gujarat-based Suchi Semicon launched its OSAT plant recently. In this insightful interview with IGNITO, Shetal Mehta, Co-founder of Suchi Semicon, delved into India’s rapidly growing semiconductor ecosystem and its role in the broader electronics manufacturing landscape.

Shetal shares his vision for Suchi Semicon, the challenges and opportunities in the semiconductor sector, and the significant strides India is making in electronics manufacturing.

IGNITO: Congratulations on the launch of your OSAT plant! What inspired you to set up this plant?

Mehta: The idea actually came from Shri Narendra Modi. Back in 2021-22, when he openly talked about the global shortage of semiconductor chips, including in India, it really got us thinking about where India stands in terms of semiconductor manufacturing.

We’ve always wanted to explore something new, something that hadn’t yet gained traction in India. So, we saw this as an opportunity. We spent about a year to a year and a half doing thorough research before making the decision to dive into semiconductor manufacturing.

By the end of that research, we had a solid understanding of the technology needed to produce these chips and had built strong connections within the semiconductor industry. That’s when we decided to take the plunge and start operations.

IGNITO: Could you share the key highlights of the facility including its capacity, investments, and the technologies it will support? How does it align with India’s growing semiconductor ecosystem?

Mehta: Our factory is one of the most modern semiconductor OSAT facilities out there. We’ve designed it with a highly optimized and purpose-built clean room, which is essential for manufacturing semiconductor devices. The clean room plays a crucial role in maintaining the environment needed to ensure the quality of the devices. This unique facility was made possible thanks to the expertise of architects and consultants who’ve worked on similar projects both in India and abroad.

On the equipment side, we’ve prioritized quality above everything else. Every piece of equipment we’ve chosen is top-of-the-line—we didn’t cut corners or settle for anything less. We carefully evaluated vendors, conducted background checks, and ensured we selected only the best in the market. The reason is simple: we want to be known as a high-quality manufacturer, not just another player in the semiconductor space. Our goal is for Suchi Semicon to become synonymous with quality, helping boost India’s reputation in semiconductor manufacturing.

In terms of investment, we’re planning to put in around $100 million into this facility, but it’ll be done in phases. Phase one is focused on prototyping, where we’ve set up a pilot line to manufacture devices and conduct qualification trials and sampling. Once we meet all the standards, we’ll expand to mass production. The facility is being built to eventually produce 3 million pieces per day, with the clean room capable of handling up to 1 million pieces daily. For now, we’re starting with a production capacity of about 3 lakh pieces per day.  The plant, with an initial area of 30,000-square-foot facility, will provide essential assembly, testing, and packaging services for semiconductor components, supporting industries such as automotive, consumer electronics, and industrial applications.

As for aligning with India’s growing semiconductor ecosystem, India is already excelling in chip design—many global semiconductor designs are created here. However, what’s missing is the manufacturing capability, and that’s the gap we’re aiming to fill. We’re bringing in the manufacturing expertise and supporting it with skilled manpower. To build this workforce, we’ve developed a training program for fresh talent, led by industry veterans with 30-40 years of experience in semiconductors. This hands-on mentorship will be key to our approach.

IGNITO: How will this facility contribute to the domestic and global semiconductor supply chain?

Mehta: Until now, semiconductor chips used in India have mostly been manufactured abroad and imported to meet the needs of the domestic market. This has made us heavily dependent on international suppliers. However, with our plant coming online, along with other semiconductor facilities being set up in India, that’s about to change.

We’re focusing on manufacturing chips in India, specifically to cater to the Indian market. This shift will significantly reduce our reliance on imports and strengthen our domestic semiconductor supply chain. Essentially, we’re aiming to build a self-reliant ecosystem where chips are “Made in India, for India”.

By reducing dependence on the global market, not only will we address supply chain vulnerabilities, but we’ll also create more opportunities for local industries, promote innovation, and support India’s journey toward becoming a global hub for semiconductors. This move aligns perfectly with the country’s vision of self-reliance and technological leadership.

IGNITO: Could you provide details about the policy support from the Gujarat government and your expectations from ISM along with other sources involved?

Mehta: The government has been incredibly supportive throughout our journey—far more than we ever expected. Their backing has made a huge difference in helping us move forward with our plans.

We’ve already been approved under the Gujarat Electronics Policy, which was a significant milestone for us. Currently, we’re in the process of securing approval under the ISM (India Semiconductor Mission) policy. Once the ISM policy approval comes through, we’ll automatically qualify for the GSM (Gujarat Semiconductor Mission) policy under the Gujarat Semiconductor Commission.

Right now, we’re in active discussions for the ISM policy, and the process is well underway. The support from both the central and state governments has been instrumental in helping us navigate these policies, and it reinforces India’s commitment to building a robust semiconductor ecosystem. Their encouragement not only makes it easier for companies like ours to set up operations but also signals their determination to position India as a global leader in the semiconductor industry.

IGNITO: How many jobs is this plant expected to generate in short and long term, and what skill sets will you primarily look for? Are there any specific initiatives or partnerships planned for upskilling the local workforce?

Mehta: Right now, even at the pilot stage, we already have a team of over 60 people. As the plant ramps up to full capacity and reaches our targets, we plan to expand significantly, employing anywhere between 900 to 1,200 people.

To achieve this, we’re focusing on building a skilled workforce. We’re partnering with universities and colleges to introduce and promote skill-based courses tailored to semiconductor manufacturing. Some institutions have already started implementing these programs, and we’re encouraging many more to follow suit.

Over the next 2-4 years, we expect to see the first batches of students graduating with specialized training in semiconductor manufacturing. That’s where we step in—we’re committed to absorbing this talent and providing them with meaningful opportunities in the industry. After all, jobs need to be available for these students once they’ve completed their courses, and we’re here to ensure they have a place to apply their skills and grow their careers.

IGNITO: What are Suchi Semicon’s future plans for expansion in India? Can we expect any additional facilities or collaborations?

Mehta: Absolutely, we’re planning quite a few. We aim to collaborate with a wide range of players across the ecosystem—those who come before us in the value chain as well as those ahead of us. Whether it’s forward or backward collaboration, the idea is to work together, not necessarily through integration but through partnerships that add value.

This also extends to educational institutions. We’re looking to team up with universities and colleges to strengthen the talent pipeline and ensure the workforce is ready for the demands of semiconductor manufacturing.

Once we get things rolling, the possibilities are endless. The sky’s the limit in terms of how much we can contribute to and grow with the ecosystem.

As for additional facilities, our immediate focus is on getting this plant fully operational and ramping up production to meet mass production targets over the next 2-3 years. That said, we’re already thinking ahead. In the meantime, we’re planning to set up a design division, which will add another layer of capability to what we’re building. This is just the beginning!

IGNITO: Are you looking at vertical integration to expand beyond assembling, assembly and testing, such as into design, R&D and other parts of the semiconductor value chain?

Mehta: Yes, we’re definitely focusing on design and R&D, as these are critical aspects of innovation and growth in the semiconductor space. However, when it comes to moving forward in the value chain—like marketing finished products under our own brand—that’s not something we’re looking to pursue. Our core strength lies in manufacturing at the industry level, and we want to stay focused on that.

On the other hand, we are very interested in the backward chain. Design is already a significant area of focus for us, and we’re also exploring opportunities in raw material manufacturing for semiconductors. This is a crucial segment that India currently lacks, and addressing it could help strengthen the country’s semiconductor ecosystem. We’re in early-stage discussions with a few raw material manufacturers, and this could be a potential area for Suchi Semiconductor to diversify into in the future.

That said, our immediate focus is on this plant. It’s our top priority to ensure it becomes fully operational and achieves its production goals before we take on additional ventures. While these diversification plans are exciting, we believe in taking a step-by-step approach to build a strong and sustainable foundation first.

IGNITO: Do you plan to cater exclusively to the Indian market or will exports form a significant part of your operations?

Mehta: Our goal is to become a truly global company. While we are rooted in India, our vision extends far beyond just serving the domestic market. We’re committed to building a strong foundation here, but our ambitions are to manufacture world-class semiconductor products in India that can cater to markets across the globe.

It’s not just about “Made in India” for India—it’s about “Made in India” for the world. We want to establish India as a significant player in the global semiconductor industry, contributing to international supply chains and delivering high-quality products that meet the needs of a global market.

By combining local expertise with a global outlook, we aim to position ourselves as a competitive and trusted partner in the semiconductor space, helping to showcase India’s capabilities on the world stage. Our journey is about creating a company that’s both proudly Indian and globally impactful.

IGNITO: What is your long-term vision for Suchi Semicon in India, and how do you see the company contributing to India’s aspiration of becoming a global semiconductor hub?

Mehta: Our approach is to manufacture locally while meeting the highest global standards. That’s the vision driving us forward. When it comes to quality, we’re committed to ensuring that what we produce here is on par with the best in the world. Our aim is to match or even exceed the standards set by leading companies—whether they’re from the West, Europe, or the East.

Quality is at the heart of everything we do. We want Suchi Semiconductor to be recognized not just as an early player in India’s semiconductor space but as a company synonymous with exceptional quality. Our goal is to build a reputation where the name “Suchi” stands for excellence and reliability.

We believe that by maintaining global quality standards, we can compete on the world stage and prove that India is fully capable of delivering cutting-edge semiconductor solutions. It’s not just about being a pioneer—it’s about setting benchmarks for quality and creating a legacy that resonates globally.

IGNITO: Finally, what message would you like to give to the stakeholders in the industry, policymakers and the youth aspiring to join the semiconductor domain?

Mehta: The response from our stakeholders has been overwhelmingly positive and supportive, and I’m really hopeful that this support will continue throughout our journey. We know it’s going to take at least three to five years for the semiconductor industry to fully evolve and mature in India, so I’m counting on the same level of encouragement and backing not just this year, but in the years ahead as well.

The policymakers have also been incredibly supportive and kind. I’m confident that they will continue to provide the same level of support as the industry grows and matures over the next five years. Their commitment will play a crucial role in helping us navigate challenges and reach our goals.

For the youth, this is an exciting time. The semiconductor industry is emerging as a sunrise sector, and many young people who once thought that fields like computer science were their only option may now realize that electronics and semiconductors offer fantastic career opportunities right here in India. As the sector grows, they’ll have the chance to stay in India, develop their skills, and build competitive careers without needing to go abroad. It’s an exciting prospect for the future of India’s workforce.