PM Modi Launches Suchi Semicon Plant as India Shifts to Chip Production

Prime Minister Narendra Modi virtually inaugurated commercial production at Suchi Semicon's Assembly and Testing plant in Surat on Friday, marking a decisive shift in India's semiconductor strategy from policy declarations to active manufacturing. Approved under the India Semiconductor Mission in May 2026, the facility represents a key milestone as the country expands its high-tech electronics ecosystem during the ongoing SEMICON India 2026 conference in New Delhi.

The three-day summit at the Yashobhoomi Convention Centre brings together over 600 exhibitors from more than 40 countries. Highlighting the broader geopolitical and supply chain objectives of the national semiconductor push, Prime Minister Modi noted that India's emergence as a reliable manufacturing hub offers a critical alternative at a time when global technology supply chains face vulnerability and strategic disruption.

The newly opened Suchi Semicon facility in Palsana, Surat, spans an investment of 868 crore rupees and boasts an annual production capacity of 1,033.20 million semiconductor chips. The plant specializes in assembly, advanced packaging, and testing operations, including Small Outline Integrated Circuit and Quad Flat No-Lead technologies. These components target power electronics, automotive systems, electric vehicles, industrial automation, consumer electronics, and energy management.

Speaking on the operational momentum across the nation, industry leaders noted that five semiconductor projects have already entered commercial production. Among the flagship ventures moving forward is Tata Electronics partnering with Taiwan's PSMC on a commercial fabrication plant in Gujarat, alongside Micron Technology's assembly and testing facility in Sanand and a CG Power-led joint venture involving Renesas Electronics and Stars Microelectronics.

Addressing industry stakeholders, Foreign Secretary Vikram Misri clarified that India's push for technological self-reliance does not entail domestic manufacturing of every single supply chain component. Instead, the country is focusing on sovereign capabilities in design, packaging, and select fabrication processes while maintaining international partnerships with trusted global entities for equipment and materials.

Global executives echoed confidence in the country's trajectory. ASML Executive Vice President Wayne Allen stated that India's semiconductor framework has achieved substantial progress over the past year, aided by strong government backing. Meanwhile, Ashok Chandak, CEO and President of IESA and SEMI India, confirmed that commercialized chips from domestic manufacturing lines are actively reaching global markets.

Regional hubs are expanding the footprint of the domestic chipmaking value chain beyond Gujarat and Uttar Pradesh. During the New Delhi summit, Odisha Chief Minister Mohan Charan Majhi and Union Electronics and IT Minister Ashwini Vaishnaw showcased the state's expanding semiconductor capabilities.

Union Minister Vaishnaw announced that the central and Odisha governments are advancing plans for an 871-acre manufacturing park dedicated to IT, semiconductors, and electronics. Equipped with modern internet, power, and transport infrastructure, the park aims to leverage the state's skilled talent pool and reliable utilities to attract further international investment and accelerate project execution.

Indian electronics manufacturing stocks drew strong market interest during the second day of the summit. Avalon Technologies led the rally with an 8.34 percent gain in early trade, while Syrma SGS advanced 6.48 percent. Kaynes Technology and Dixon Technologies also registered positive movements amid reports that India has attracted investment pledges totaling up to 12 billion dollars under its updated semiconductor policy framework.

Implementation timelines continue to advance under the overarching Semicon India Programme, which has approved ten major projects with investment commitments reaching approximately 1.6 lakh crore rupees over the past four years. Additional plants are scheduled to commence commercial manufacturing later in the year, backed by academic initiatives training tens of thousands of engineering students for specialized roles across the domain.