Semiconductor Plant Inaugurated

India’s first commercial chip plant begins production
On 16 December 2024, CR Patil inaugurated a new semiconductor chip plant in Surat’s Bagumara region operated by Suchi Semicon with an ₹840 crore investment and daily production capacity of 300,000 chips.
Why It’s Significant
This is the first OSAT (Outsourced Semiconductor Assembly & Test) facility launched by a local industrial group, indicating India’s growing capabilities beyond fab design into actual chip packaging and testing, a strategic step in semiconductor value chains.
Economic & Industrial Impact
The plant creates direct jobs in engineering, assembly, QA, and testing. It also encourages cluster growth by attracting component manufacturers and testing labs a leap forward for Gujarat’s digital economy.
Context in India’s Semiconductor Drive
This initiative complements larger national efforts
L&T backed LTSCT building a new ₹10 billion fab by 2027.


Tata’s Assam assembly and test factory (₹27,000 cr), set to begin in 2025.


Government’s ₹76,000 cr India Semiconductor Mission funding new fab proposals.


Broader Implications
Suchi Semicon’s launch signals the opening of OSAT ecosystems in India, attracting global buyers and skills growth. Gujarat’s policy support likely inspired this expansion.
Outlook
As India scales integrated semicon capabilities from fab to OSAT it moves toward global competitiveness. With the India Semiconductor Mission entering Phase 2, more OSAT investments and local supply chains are expected, paving the way for greater chip independence and tech sovereignty .