The global semiconductor industry is undergoing a major realignment, with nations racing to build resilient domestic supply chains and reduce dependence on concentrated manufacturing hubs. India, long recognized for its chip design talent, is now making serious strides toward becoming a full-spectrum semiconductor nation, backed by favorable government policies, rising electronics demand, and growing investor confidence.
This transformation sees OSAT (Outsourced Semiconductor Assembly and Testing), a critical and accessible entry point into semiconductor manufacturing, play an important role. To understand how homegrown companies are shaping this journey, Analytics Insights spoke with Ashok Mehta, Co-founder of Suchi Semicon, a company building India's backend semiconductor manufacturing capabilities from the ground up. Here are the excerpts:
How do you see India’s semiconductor ecosystem evolving, and what role will OSAT play in this growth?
India’s semiconductor ecosystem is growing at a strong pace, supported by government initiatives, rising demand, and increasing global interest. The country already has a strong base in chip design, and now the focus is shifting towards building manufacturing capabilities. In this journey, OSAT will play a very important role.
OSAT, which includes chip packaging and testing, is a more practical and faster way to enter semiconductor manufacturing compared to setting up fabs. It requires lower investment and can be scaled in phases, allowing companies to start production sooner. This helps build local capabilities, reduce dependence on imports, and improve supply chain efficiency.
As industries like electronics, automotive, and EVs continue to grow, the demand for reliable chip packaging will increase. OSAT will act as a strong foundation for India’s semiconductor ecosystem, helping the country move towards self-reliance while also becoming a trusted partner in the global supply chain.
How is Suchi Semicon contributing to building local semiconductor manufacturing capabilities in India?
Suchi Semicon is contributing by focusing on building strong backend semiconductor manufacturing capabilities in India, especially in chip packaging and testing. The company is setting up infrastructure and processes to convert semiconductor wafers into usable chips, a critical step in the value chain.
By developing these capabilities locally, Suchi Semicon is helping reduce India’s dependence on imports and strengthening the domestic supply chain. The company is also working towards bringing global standards and best practices into its operations, ensuring quality and reliability for customers across industries.
Suchi Semicon is collaborating with global players and partners to bring in advanced technologies and expertise. This not only enhances its own capabilities but also contributes to the overall growth of the semiconductor ecosystem in India. Through these efforts, the company aims to play a key role in building a strong and sustainable semiconductor manufacturing base in the country.
What are your key expansion plans, and how do you plan to scale operations in the coming years?
Our expansion plans focus on scaling operations in a phased, sustainable manner. We have already initiated pilot production, and our next step is to move towards mass production in the near future. This will involve increasing capacity, improving efficiency, and strengthening our manufacturing processes.
We are also looking at expanding our presence across both domestic and international markets. By catering to a wider customer base, we aim to increase volumes and build a strong revenue pipeline. Investments in technology, infrastructure, and talent will continue to be key focus areas as we scale.
We are committed to maintaining high quality standards and operational efficiency. Our approach is to grow steadily while ensuring long-term sustainability. Over the next few years, we aim to establish ourselves as a reliable and competitive player in the global semiconductor packaging and testing space.
How are strategic partnerships helping Suchi Semicon integrate into global semiconductor supply chains?
Strategic partnerships are playing a very important role in helping Suchi Semicon connect with global semiconductor supply chains. By collaborating with established international players, we are able to access advanced technologies, industry expertise, and global best practices.
These partnerships also help in building credibility and trust with customers worldwide. They open up opportunities to work on global projects, expand into new markets, and understand evolving industry requirements. This is especially important in the semiconductor industry, where quality, precision, and reliability are critical.
Through such collaborations, we can also strengthen our packaging and testing capabilities, ensuring our offerings meet global standards. Overall, partnerships are a strong enabler of growth, helping us scale faster and position ourselves as a competitive player in the international semiconductor ecosystem.
What is your outlook on India becoming a reliable semiconductor manufacturing hub in the future?
India has strong potential to become a reliable semiconductor manufacturing hub in the coming years. The government’s support through policies and incentives, along with increasing investments from both domestic and global players, is creating a strong foundation for growth.
The country already has a large talent pool and a growing electronics market, which further supports this vision. As more companies invest in different parts of the value chain, including OSAT, design, and eventually fabs, the ecosystem will become more robust and self-sustaining.
However, this will take time and consistent efforts in terms of infrastructure development, skill building, and technology adoption. With the right approach and continued collaboration between industry and government, India can gradually reduce its dependence on imports and become an important part of the global semiconductor supply chain.