The Indian government has announced a ₹4,500-crore investment over the next three years to modernize the Semi-Conductor Laboratory (SCL) in Mohali, aiming to scale up production a hundredfold and position the facility as a national hub for chip design and fabrication. The announcement was made on Friday by IT and Electronics Minister Ashwini Vaishnaw, who emphasized that SCL will remain a government-owned entity, crucial for India’s strategic self-reliance in semiconductor technologies.

The funding comes from the ₹76,000-crore allocation under the India Semiconductor Mission (ISM) 1.0, launched in 2021. The investment will transform SCL into a national tape-out facility, providing students, researchers, and startups with the ability to send chip designs for manufacturing—a service commercial foundries are often unwilling to provide. Vaishnaw highlighted that India currently has over 60,000 students using advanced Electronic Design Automation tools across 298 universities, including undergraduates, master’s students, PhD scholars, and research fellows, creating significant domestic capability in semiconductor design.

SCL’s Current Capabilities and Planned Upgrades

SCL Mohali, established in 1976, is India’s only facility capable of end-to-end chip-making processes, including designing, fabricating, assembling, packaging, testing, and reliability checks. The lab currently produces custom chips, optical components, and micro-mechanical devices across two fabrication lines. One of the lines, the 6-inch MEMS line operational for three decades, will be removed as part of the modernization effort, allowing the facility to focus on building capabilities ranging from 28nm to 180nm, particularly for mature-node technologies used in robotics and electronics.

Manoj Wadhwa, group head of SCL’s project planning group, said the modernization will significantly improve production capabilities, enabling India to produce higher volumes of semiconductor devices while fostering innovation in research and development.

Prime Minister Modi’s Five-Point Roadmap for SCL

Minister Vaishnaw outlined a five-point plan for the SCL modernization and expansion:

1. Modernization and Scaling Up: Upgrading the facility’s technology and increasing production capacity by a hundredfold.
2. Technological Upgradation: Replacing outdated manufacturing processes with modern nodes and tools to enhance efficiency and competitiveness.
3. National Tape-Out Facility: Establishing SCL as a hub for students, researchers, and startups to perform chip tape-outs before fabrication. Commercial foundries are unlikely to accept student chip designs, underscoring the importance of a government-controlled facility.
4. Expansion: The ministry has requested 25 acres of additional land from the Punjab government to facilitate modernization and growth. Vaishnaw stressed that faster land acquisition will accelerate project timelines.
5. Strategic Self-Reliance: Creating a consortium involving the Centre for Development of Advanced Computing (CDAC), SCL, and the Defence Research and Development Organisation (DRDO), among others, to develop indigenously produced chips for strategic applications and reduce dependence on foreign suppliers.

Progress Under India Semiconductor Mission

Under ISM 1.0, the government aimed to train 85,000 engineers over 10 years. However, over 60,000 students have already been trained in just three years. Vaishnaw noted that 10 semiconductor plants are under construction nationwide, with two already in pilot production and two more expected to start production by March 2026. Notably, Kaynes and CG-Semi plants in Gujarat have begun pilot production. Discussions for Semicon 2.0, the next phase of India’s semiconductor initiative, are already underway.

Historical Context of SCL

SCL Mohali began as a government enterprise, Semiconductor Complex Limited, in 1976, acquiring technology from AMI in the United States and starting fabrication in 1983. At that time, India was at par with global semiconductor technologies. However, a devastating fire in 1989 destroyed the plant’s fabrication and packaging facilities, delaying development. A new packaging facility came online in 1991, and wafer fabrication resumed in 1995.

Despite setbacks, SCL continued in-house development, achieving 2-micron fabrication by 1995 and upgrading to 180-nanometre nodes in 2011-12. The lab was integrated under the Department of Space in 2006 to focus on strategic sectors and later brought under the Ministry of Electronics and Information Technology (MeitY) in February 2022. Today, SCL Mohali remains India’s first semiconductor plant, providing a foundation for future chip-making ambitions.

Looking Ahead

The modernization of SCL is expected to not only boost India’s domestic semiconductor production but also provide critical infrastructure for research and innovation. By supporting startups and educational institutions, the facility will strengthen India’s semiconductor ecosystem and contribute to the country’s broader goal of achieving technological self-reliance, especially in strategic sectors.