India's chip revolution begins: Gujarat startup ships first made-in-India semiconductors to US

In a significant breakthrough for India’s fledgling semiconductor ecosystem, Gujarat-based Suchi Semicon has shipped its first packaged semiconductor chip to the United States for customer validation. This marks a crucial milestone in India’s ambition to become a key player in the global semiconductor value chain, signalling its emergence as a credible contributor to the global chip supply chain.

Surat-based Suchi Semicon’s Outsourced Semiconductor Assembly and Test (OSAT) facility was inaugurated in December 2024 by Union Minister C.R. Patil and Gujarat’s Home Minister Harsh Sanghavi. The plant, spanning an initial 30,000 square feet, provides essential assembly, testing, and packaging services for semiconductor components, supporting industries such as automotive, consumer electronics, and industrial applications.

This shipment comes just months after the inauguration of Gujarat’s first OSAT facility by Suchi Semicon. The company has completed back-end packaging and testing of a chip designed abroad and is now sending it for final validation—a standard procedure before large-scale production and deployment.

Shetal Mehta, co-founder at Suchi Semicon, told Fortune India, “The groundbreaking of our plant was done in October 2023, it went operational on December 15, 2024. And when I say operational, all the activities inside the plants are actually functioning. So we started processing those wafers from December 16 and as we speak, the first batch of our packaged chips have been shipped out to the US customer for validation.”

The packaged chip is bound for a leading technology company in the US. The identity of the end customer remains under wraps due to non-disclosure agreements, but Mehta confirmed the chips will be primarily used in consumer electronics.

With an investment of $100 million, the facility, once running at full capacity, is poised to scale production to 3–5 million chips daily.

Devroop Dhar, Co-Founder and Board Member at Primus Partners, told Fortune India, “India’s semiconductor ambitions have taken a very strong step forward when Suchi Semicon dispatched its first shipment of packaged chips to the US. This set of chips will undergo validation. But, this is not only an achievement for the company, but this also indicates India’s entry into the global semiconductor space.”