Bihar’s Semiconductor Crisis: 4 Years Later, CEO Declares “Worst Decision of My Life”

Frustration Mounts Over Infrastructure Woes

In a candid social media post, Chandan Raj, founder and CEO of Suresh Chips and Semiconductor Pvt. Ltd., the first semiconductor company in Bihar, has labeled his decision to establish the business in the state as the “worst decision” of his life. Taking to platform X (formerly Twitter), Raj expressed his frustration over the numerous challenges his company has faced since its inception in December 2020, primarily due to the state’s underdeveloped infrastructure.

Chandan Raj’s viral post on X (formerly Twitter)
Chandan Raj’s viral post on X (formerly Twitter)

The post quickly gained attention, highlighting the broader struggles faced by tech entrepreneurs in regions like Bihar, which lags behind other Indian states in terms of industrial growth and ease of doing business. Raj, who has an extensive background working for major global tech companies such as Samsung, Intel, and AMD, described Bihar as “the land of frustration” for high-tech industries like semiconductor manufacturing.

Lack of Infrastructure Drives Away Clients

One of the most significant challenges Raj’s company has faced is the lack of basic infrastructure. In his post, he mentioned that clients had refused to work with the company due to the absence of proper roads and street lighting around its Muzaffarpur headquarters. Despite repeated attempts to address these issues, Raj’s appeals to the local government over the past four years have fallen on deaf ears.

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“Our customers and clients went away and refused to work with us. I have been waiting for the last four years for road and infrastructure, and no help from anyone,” Raj wrote in his post. “I think the Bihar government does not understand the semiconductor industries.”

A lone road leading to Schipsemi’s headquarters in Muzaffarpur, where inadequate infrastructure hinders business operations. (x.com)

The infrastructure issues have severely impacted Suresh Chips and Semiconductor, a company operating in the highly competitive and technically demanding semiconductor and Very-large-scale integration (VLSI) sector. VLSI technology involves creating integrated circuits by combining millions, sometimes billions, of transistors onto a single chip, and requires a stable business environment with adequate infrastructure to thrive.

A Ray of Hope After Government Response

Despite his frustration, Raj’s social media posts caught the attention of local authorities. The District Magistrate of Muzaffarpur responded on X, stating that administrative approval for the construction of roads around the company’s headquarters had already been granted, and the work would commence immediately after the Dussehra festival. While this response offers a glimmer of hope, the delays in getting basic infrastructure remain a sore point for Raj and others trying to build businesses in Bihar.

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A Broader Problem in Bihar

Raj’s struggles are not isolated. Bihar has consistently ranked low in national ratings for ease of doing business. In 2022, it placed 26th among Indian states, reflecting the broader challenges businesses face in the region. The state’s per capita income is also among the lowest in the country, further complicating its efforts to attract industries.

Bihar’s industrial landscape: struggling to keep pace with national progress due to systemic challenges.
Bihar’s industrial landscape: struggling to keep pace with national progress due to systemic challenges.

Industry experts, including author Mrityunjay Sharma, who wrote Broken Promises – Caste, Crime, And Politics in Bihar, have long pointed out that poor governance, bureaucratic inefficiency, and inadequate infrastructure are key factors holding Bihar back from realizing its industrial potential. Sharma notes that for industries to flourish, the state must offer basic assurances such as law and order, administrative efficiency, and, most importantly, reliable infrastructure.

Will Bihar Ever Be Ready for High-Tech Industries?

For Bihar to attract industries like semiconductor manufacturing, it must address fundamental issues that have long hindered its economic development. While states like Gujarat, Tamil Nadu, and Chhattisgarh offer more favorable environments for industrial growth, Bihar has a long way to go.

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For Chandan Raj, the hope remains that with the government’s recent promises, Suresh Chips and Semiconductor can move beyond these obstacles. But for now, his vision of transforming Bihar into a tech hub remains a distant dream.

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Kishori Baheti
Kishori Baheti

Finance MBA student with a passion for current events, seeking a content writing position to leverage my research and writing skills.

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