Prime Minister Narendra Modi recently inaugurated the commercial production of the advanced Semiconductor Assembly and Testing (OSAT) plant operated by Suchi Semicon, located in Palsana, Surat. The ceremony, conducted virtually, took place on September 17, 2026, in conjunction with the ‘Semicon India 2026’ event held in New Delhi. This initiative is positioned as a significant step towards reinforcing India’s stature as a dependable hub for the global semiconductor manufacturing and supply chains.

Investment and Production Capacity Details

The OSAT facility has been established with an investment of around ₹868 crore and boasts an annual production capacity of 1,033.20 million (103.32 crore) semiconductor chips. These chips are designed for various applications, including power electronics, analogue integrated circuits, automotive and electric vehicles, industrial automation, consumer electronics, and energy management devices.

According to information from the press release, the plant is equipped with high-quality cleanrooms and has successfully dispatched its first consumer shipment from India. The establishment of this facility is expected to significantly bolster the semiconductor ecosystem in Gujarat, which has seen considerable advancements under the leadership of Chief Minister Bhupendra Patel.

Additionally, the project was sanctioned by the Union Cabinet in May 2026 as part of the India Semiconductor Mission. Suchi Semicon aims to enhance collaboration within the semiconductor sector, thereby further developing the region’s manufacturing capabilities.

Collaboration with Global Technology Leader

Suchi Semicon has formed a partnership with ROHM Semiconductor, a leading company based in Japan, to adopt cutting-edge technologies and align with global quality standards. This collaboration signifies the commitment of Suchi Semicon to ensure that its operations meet international benchmarks.

The installation of this state-of-the-art OSAT plant will serve as a crucial contributor to Gujarat’s semiconductor landscape. The region is already home to several significant projects, including the Tata-PSMC semiconductor fab in Dholera, alongside initiatives by Micron, CG Semi, and Kaynes Semicon in Sanand. This collective effort positions Surat as a key emerging centre within the semiconductor industry.

As part of its long-term vision, Suchi Semicon has expressed its intention to further develop a robust semiconductor packaging and testing ecosystem in Gujarat. This will be achieved by leveraging advanced technology, nurturing skilled talent, and fostering local supply chains, as well as partnerships with educational institutions in the area.

Government Support and Future Prospects

Suchi Semicon has extended its gratitude towards both the Central and State Governments for their unwavering support in reaching this important milestone in the semiconductor sector. The company’s commitment to innovation and local production aligns with broader national initiatives that emphasise self-reliance and technological advancement.

With the establishment of the OSAT plant, the Indian semiconductor landscape is poised for transformative growth. This development not only supports the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives but also encourages investment and employment opportunities in the region, fostering an ecosystem conducive to technological progress.

As the semiconductor demand continues to rise globally, Suchi Semicon’s new facility aims to contribute significantly to fulfilling both domestic and international needs, further positioning India as a pivotal player in the global semiconductor market.

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