“We have a foolproof business plan. Our business plan is not primarily for incentives. We have set up a plant to do business. The Centre’s approval will come when we meet their requirements. We have made $100 million (about Rs 840 crore) investment plan over three years,” Mehta said.
He said that the state government has approved 20% incentives for the plant.
“At the time of Covid when there was shortage of semiconductors, prime minister Narendra Modi had asked to turn crisis into opportunity. We made our mind at that time to make a foray into the semiconductor business. We decided to start a factory after a lot of research with industry experts,” Mehta said.
He is also the founder of textile company Suchi Industries.
“We already have clients who have placed their requirements. Majority of our production will be for overseas clients. We have started trial production some time back and our components are getting tested by clients,” Mehta said.
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He said that the company has used some funds from the textile business and raised a funding round from friends and families. “We have also tied up with Punjab National Bank for credit facility. Our investment plan also includes incentives that we are confident of getting from the Centre based on our performance,” Mehta said.
Suchi Semicon co-founder Shetal Mehta said the commercial shipment of the semiconductors will start in the first quarter of next year.
“After completion of testing, the commercial shipment will start. Some of the applications where our components will be used take 2 weeks for test and approval and in some it may take 3-4 months. We expect commercial shipments for most of the applications to start in the first quarter,” Shetal said.
He said the company plans to get into power semiconductor in the second phase of expansion which can be as early as in the next financial year.
Talking about the Centre’s approval, Shetal said the company is in advanced stages of discussion with technology partners and expects to sign a memorandum of understanding soon.
“Government wants us to have a foolproof back-up plan to avoid any kind of adverse impact on business. Technology partnership will further boost our business profile. Once we have a technology partner, the Centre will also approve our plant for incentives under India Semiconductor Mission,” Shetal said.
He said that the Centre has two conditions, one is a technology partner and the other is experience in the sector.
“We are rolling out production at our plant. I believe that the Centre will also look at our performance as one criteria for approving incentives,” Shetal said.
He said that the company has a team of 60 people with some of them having vast experience in the semiconductor space.
“We are also training more employees before we scale up our production. Semiconductors are a new-age business and the future is of semiconductors across various domains. In a normal car, a customer is exposed to about 600 types of semiconductors and in an electric vehicle it is in the range of 5,500 semiconductors. As demand for technology grows, the demand for semiconductors will also grow multifold,” Shetal said.
He said that through the textile business, Suchi Group has had several contacts across industries and people in the technology space have started gaining confidence in India’s ability to produce semiconductors.
