Centre to spend₹4,500 crore to modernize SCL Mohali

The Indian government is set to allocate ₹4,500 crore over three years to upgrade the state-run Semiconductor Laboratory (SCL) located in Mohali. This announcement was made by Electronics and IT Minister Ashwini Vaishnaw during a recent event associated with the chips-to-startup initiative at the facility. The funding for this modernization effort will come from the ₹76,000 crore India Semiconductor Mission (ISM 1.0), which was initiated in 2021. Vaishnaw emphasized that this investment aims to enhance SCL's capabilities significantly, with a target to increase production levels by 100 times while developing new intellectual properties (IPs). For the ambitious expansion plans, an additional 25 acres of land has been requested from the Punjab government. Vaishnaw remarked that expediting this land allocation would greatly aid SCL's modernization efforts. However, a recent report highlighted a complication: a 26-acre land parcel near the lab is currently entangled in disputes, resulting in delays. The Punjab government is reportedly demanding around ₹700-800 crore for the land, which poses a barrier to the Centre's expansion plans. In terms of financing, Vaishnaw noted that allocations for SCL would be flexible and based on the progress made. Initially, there was talk of setting aside approximately ₹10,000 crore for the lab's modernization. As part of this initiative, SCL has also issued invitations for bids aimed at enhancing its existing 180-nanometer fabrication line. This upgrade will involve replacing outdated equipment and aims to boost the current production capacity from about 700 wafer starts per month (WSPM) to 1,500 WSPM. This 180-nanometer process, while considered older technology, is still vital for producing chips used in various applications such as satellites, medical devices, and power management systems. The SCL facility is currently evaluating bids from Tata Semiconductor and Israel's Tower Semiconductor to undertake the revamp. The modernization of SCL is crucial not only for boosting India's semiconductor production but also for supporting local startups focusing on deep-tech and semiconductor development. Industry leaders believe a revitalized SCL can facilitate early-stage prototyping and small-volume fabrication, enabling startups to transform their ideas into market-ready products. Ashok Chandak, president of the India Electronics and Semiconductor Association (IESA), stated that SCL has the potential to become a strategic asset for the nation. He noted that future upgrades should go beyond enhancements and promote public-private partnerships to transition from legacy technologies like 180 nanometers to more advanced nodes such as 65 and 28 nanometers, thus enhancing global competitiveness. Looking ahead, SCL has announced comprehensive support for chip design startups, providing fabrication, testing, and packaging services for 180-nanometer chip technology. This initiative has already attracted 94 chip designs for production, with 58 having been successfully delivered to various startups and academic entities. Vaishnaw assured that SCL would provide necessary tapeout facilities for startups and researchers, a critical service not usually offered by commercial foundries. A consortium involving SCL and other research organizations will be established to identify and meet the semiconductor requirements of India's strategic sectors. As part of the ISM 1.0, the government has already approved ten semiconductor projects with a combined investment of around ₹1.6 trillion across six states, with further incentives in development. According to IESA forecasts, India's semiconductor demand could reach $103 billion by 2030, with a significant portion stemming from technologies reliant on 180-nanometer processes. This upsurge in demand highlights the importance of SCL's modernization in strengthening India's semiconductor landscape.