In an interview with TimesTech, Shetal Mehta, Co-Founder of Suchi Semicon, shared key insights on how semiconductor innovation, especially in OSAT, can accelerate AI growth in India. Highlighting India’s potential as a global AI chip hub, he emphasized the need for infrastructure, talent, and policy alignment to fuel a self-reliant ecosystem and enable startups to build secure, fast, and cost-effective AI solutions.
Read the full interview here:
TimesTech: With AI becoming a part of everyday life, from virtual assistants to industrial automation, how crucial is semiconductor innovation to enabling high-performance AI tools? Can general-purpose chips keep up with the demands of AI?
Shetal: AI is becoming deeply embedded in our lives, from chatbots to industrial automation. To make AI work efficiently, we need powerful and energy-efficient semiconductors. General-purpose chips like CPUs can handle AI tasks, but they’re not built for the massive data processing AI requires. This is where custom chips like GPUs, NPUs, and ASICs come in; they are designed to process huge volumes of data quickly and with less power. With AI models getting more complex and demanding, the future lies in innovation at the chip level. Smaller node sizes, better packaging, and 3D stacking all help improve performance and efficiency. Without innovation in semiconductor technology, AI tools won’t be able to deliver real-time performance or scale efficiently. Therefore, research and development to support innovation in backend players like OSATs are crucial.
TimesTech: India has made significant announcements under the India Semiconductor Mission and India AI. From your perspective, what are the major gaps in India’s current semiconductor value chain, especially in OSAT, and how do these impact AI infrastructure development?
Shetal: India is making strong progress in building its semiconductor ecosystem through the India Semiconductor Mission and India AI programs. However, the value chain still has some missing links. While design capabilities are really strong, the country needs more investments in front-end fabs and especially in OSAT (Outsourced Semiconductor Assembly and Testing). Without strong domestic packaging and testing capabilities, chip designs must be sent abroad, increasing cost, time, and risk. For AI infrastructure, which needs fast chip development and secure data handling, these delays become a major bottleneck. Although companies like Suchi Semicon, Tata and HCL are building OSAT facilities, out of which only one is functional right now, the country still relies heavily on imports for backend services. Bridging these gaps with focused policy support, industry partnerships, and investment in infrastructure is essential to build a truly self-reliant semiconductor ecosystem that supports India’s AI ambitions.
TimesTech: As an OSAT company, Suchi Semicon plays a pivotal role in the back-end of chip manufacturing. How does strengthening local OSAT capabilities accelerate the AI product lifecycle, from prototype to market, in India?
Shetal: As an OSAT company, Suchi Semicon plays a vital role in transforming silicon wafers into working chips ready for applications. By strengthening India’s local OSAT capabilities, we make it easier and faster for startups and enterprises to go from chip prototypes to final products. Normally, companies send designs overseas for packaging and testing, which takes weeks and adds high costs. Local OSAT shortens that process, enabling faster iteration and innovation. For AI, where time-to-market is critical, this speed matters. Strong OSAT capabilities are not just backend support; they are enablers of innovation, making India more competitive in the global AI product development race.
TimesTech: Cost, speed, and security are critical to AI adoption. How can domestic semiconductor packaging and testing help Indian startups and enterprises build AI tools that are globally competitive yet locally manufactured?
Shetal: Domestic semiconductor packaging and testing can transform how Indian startups and enterprises develop AI products. First, it reduces cost significantly by avoiding overseas shipping, customs, and long lead times. For startups working on tight budgets and faster launches, local OSAT support offers huge savings. Second, speed is improved; prototype chips can be packaged and tested within weeks rather than months. This allows companies to iterate, test, and launch faster. Third, it ensures better security. Sensitive chip designs and data are protected when kept within India, which is important for sectors like defense, finance, and healthcare. Together, these benefits allow Indian innovators to build AI tools that are locally made but globally competitive. As more OSAT units get approved and start their production in India, it will become easier for the entire AI ecosystem to grow.
TimesTech: Do you envision India becoming a global AI chip hub shortly? What would it take, from infrastructure to talent, for India to lead in the chip-to-AI value chain on the global stage?
Shetal: India has the potential to become a global hub for AI chip development, but it will take coordinated efforts across infrastructure, talent, and policy. We are seeing early steps with major investments in fab and OSAT facilities under the India Semiconductor Mission. We also need specialized training in semiconductor design, and EDA tools related to advanced packaging. Programs in colleges and skill institutes must focus on advanced semiconductor packaging, and AI-related technologies. Infrastructure development, such as high-quality power supply, water, and transport, is also critical. Incentives to attract global partnerships, IP licensing, and knowledge transfer will help accelerate progress. At Suchi Semicon, we see advanced packaging as India’s next frontier. Our MoU with a U.S. partner marks the first step toward that future, moving from “Make in India” to “Innovate in India.
