The Indian government has announced a massive ₹4,500 crore investment over the next three years to transform the state-run Semiconductor Laboratory (SCL) in Mohali into a world-class facility. Electronics and IT Minister Ashwini Vaishnaw revealed this ambitious plan during the chips-to-startups program at the Mohali facility on Friday.
Major Funding from India Semiconductor Mission
The substantial investment will be drawn from the ₹76,000 crore India Semiconductor Mission (ISM 1.0), marking a significant step in India's semiconductor self-reliance journey. Minister Vaishnaw emphasized that this funding will enable comprehensive modernization of SCL Mohali, with plans to scale up current production levels by 100 times and develop new intellectual properties.
According to the minister, the modernization program faces a crucial requirement for 25 acres of additional land for further expansion. The Centre has formally requested the Punjab government to provide this land parcel, with Vaishnaw stressing that "the sooner they give, the more it will help in the modernization and expansion of SCL Mohali."
Land Acquisition Challenges
The expansion plans, however, face potential hurdles due to land acquisition issues. Reports indicate that a 26-acre land parcel near the existing SCL facility has been identified as essential for the modernization project. The land, owned by the Punjab government, has become a point of contention with ongoing disputes and a higher price demand of approximately ₹700-800 crore causing delays in the government's strategic plans.
When questioned about the total allocation for SCL from the ISM, Vaishnaw clarified that "it is a fungible amount. The allocation will be done based on the progress." This approach indicates a performance-based funding model, though the government had previously discussed earmarking around ₹10,000 crore for SCL's modernization.
Technical Upgrade and Production Enhancement
The modernization initiative includes significant technological upgrades to the existing infrastructure. In February, SCL invited bids to improve the current 180-nanometer fabrication line, which involves replacing decades-old equipment. The enhancement project focuses on increasing the production capacity from the current 700 WSPM (wafer starts per month) to 1,500 WSPM.
While the 180-nanometer process represents older chipmaking technology, it remains crucial for manufacturing chips used in satellites, space and defense systems, medical devices, and power management applications. The SCL facility operates an 8-inch fab line, processing silicon wafers that are 8 inches in diameter, though modern facilities typically use larger 12-inch wafers for improved efficiency.
Strategic Partnerships and Startup Support
The selection process for technology partners has advanced significantly, with Tata Semiconductor and Israel's Tower Semiconductor being shortlisted from nearly a dozen companies to lead the SCL revamp. This partnership aims to bring international expertise to the modernization effort.
In a significant move to boost domestic innovation, SCL announced in October 2024 its commitment to provide end-to-end support for chip design startups, including fabrication, testing, and packaging services. This initiative enables startups working on 180-nanometer chip technology to utilize SCL's manufacturing facility for prototyping and limited-scale production.
Minister Vaishnaw highlighted the strategic importance of this support, stating that "SCL Mohali will provide whatever tapeout facility for startups, researchers and academia is required. This is important because no commercial foundry will take up a chip tapeout project of startups."
The government plans to establish a consortium involving the Centre for Development of Advanced Computing (CDAC), SCL, and organizations like DRDO to identify and fulfill the chip requirements of India's strategic sectors, ensuring that the modernized facility serves both commercial and national security interests.
