Tata Group, TI And Tower Semiconductors Compete to Modernise SCL, Mohali

MeitY aims to upgrade the facility to industry-standard legacy nodes of 65 and 40 nm initially, before advancing to more cutting-edge nodes.

Since September 2023, the Indian government has received nine bids from major companies, including the Tata Group, Tower Semiconductors, and Texas Instruments, for the modernization of its Semi-Conductor Laboratory (SCL) in Mohali. The government plans to invest around $1 billion in the 48-year-old facility, which is the only chip manufacturing unit in India that produces semiconductors for strategic and defence purposes, including for space missions like the Chandrayaan.

The financial bids will be invited from these companies once the government decides the nodes that the facility will manufacture. The selected firm may need to collaborate with a technology firm that possesses licensing-grade semiconductor technology.

The 180 nm node size chips that the facility produces right now have limited applications. The Ministry of Electronics and Information Technology (MeitY) aims to upgrade the facility to industry-standard legacy nodes of 65 and 40 nm initially, before advancing to more cutting-edge nodes.

semiconductor chip

- Advertisement -

This modernisation effort is part of the government’s broader $10 billion semiconductor incentive package, aimed at establishing a semiconductor chip fabrication ecosystem in India. The government is hopeful for more bids, especially from domestic companies, given the national importance of the work.

We are evaluating the current bids including from the Tata Group. A couple of companies working in the defence space have also shown interest,” said one of the officials.

The Tata Group has been actively preparing to enter the chip manufacturing sector in India, with its chairman N Chandrasekaran recently announcing plans to set up a chip manufacturing unit at Dholera. Tower Semiconductor, which assisted the government in planning the 180 nm chip plant at SCL, is also eager to enter India’s commercial chip manufacturing segment. Texas Instruments, known for its significant chip research and development operations in the country.

The bidder needs to transform the facility into a R&D centre, an at-scale manufacturing facility or a combination of both, ensuring end-to-end setup and operationalisation of the R&D fab. This includes technology transfer, material and equipment supplies, installation, operational testing, commissioning, skilling of operational manpower, and periodic maintenance. SCL will continue to meet the semiconductor chip demands of government agencies like the Indian Space Research Organisation.

SCL’s primary focus has been on R&D and not commercial chip production, while experts like Satya Gupta, CEO of the Epic Foundation, suggest that the facility could benefit from some commercial focus. He proposes a revenue target of $50 million in five years, with 80% coming from commercial operations and the rest from strategic sector products.

- Advertisement -
Loading form…

Industry's Buzz

thyssenkrupp

thyssenkrupp Expands Automotive Electronics R&D In Pune

0
thyssenkrupp Automotive Technology is expanding automotive electronics and software R&D in Pune, planning to grow its engineering team beyond 300 to support global programmes...

Nuuk and EPACK Durable Partner to Manufacture Small Appliances in India

0
Direct-to-consumer brands team up with contract manufacturers to boost domestic production of air fryers and circulator fans.  Direct-to-consumer (D2C) home appliance brand Nuuk has joined...

Potential US Curbs Bears Down on Chinese Optical Chip Stocks

0
Shares of upstream laser chip suppliers suffered steeper declines compared to downstream optical transceiver manufacturers. A report by Morgan Stanley, earlier this month, warned...
Prime Minister Modi

Modi Flags 6G And Domestic Electronics Production At IMC 2026

0
Prime Minister Narendra Modi has outlined India's next telecom priorities at India Mobile Congress 2026, linking the 5G-to-6G roadmap with semiconductor production, domestic electronics...
Fujitsu

Fujitsu-Owned 1Finity Deploys 200+ Engineers To Expand India’s Optical Networking Business

0
Japan’s Fujitsu-owned 1Finity is expanding its India networking business with more than 200 engineers as AI and data-centre growth drives demand for optical networking...

Learn From Leaders

Does India’s Chip Packaging Growth Need Local Materials At Scale?

0
What will it take for specialised semiconductor materials manufacturing to grow in India? Packaging volumes will be a key factor as OSAT facilities move...
Ronak Kumar Samantray, Founder, TM2Space Technologies Pvt Ltd.

“Our goal is to build data centres in space.” – Ronak Kumar Samantray, TM2Space

0
A space startup aims to build orbital data centres, letting users run AI models and store data on satellites while also supplying satellite hardware...

India’s Photonics Puzzle Is Finally Coming Together 

0
Can India turn its scattered photonics capabilities into a stronger industry? A new association aims to connect the ecosystem and strengthen the domestic value...
Jin Bains, CEO, Mini-Circuits

Mini-Circuits CEO Jin Bains on Navigating High-Frequency Component SWaP-C Constraints, Emerging Markets, and Career...

0
In this exclusive, Jin Bains, Chief Executive Officer (CEO) of Mini-Circuits, explains in a conversation with Dilin Anand of EFY about areas of emerging...

India Needs Not a Hundred, But Thousands of Chip Diversified Companies 

0
Can India build a semiconductor ecosystem beyond fabs? Indiesemic believes thousands of diversified chip companies are needed to make that possible. India’s semiconductor push is...

Startups

PowerMon

Aquaexchange Brings Monitoring And Automation To Shrimp Farming

0
The startup has developed an AI- and IoT-enabled platform that helps shrimp farmers manage farms, access financing, monitor operations, and connect with markets. The startup...

Drone-Like Aircraft For Logistics From BluJ Aerospace

0
Hyderabad-based BluJ Aerospace is developing indigenous electric and hydrogen-powered vertical take-off and landing (VTOL) aircraft for remote cargo transport. BluJ Aerospace, a Hyderabad-based aerospace startup...
Jash Jetly, Co-founder and CEO of EVE

“The cloud isn’t the only way to run AI. We’re proving it can happen...

0
A startup is building a decentralised AI and communication network that runs across everyday devices instead of centralised cloud servers. In an interview, Jash...
Mohit Gupta, founder and CEO, TYLsemi

Building AI Chips, One Block at a Time 

0
What if building an AI chip became as simple as assembling reusable blocks? The startup is working to make custom silicon accessible beyond the...
Seema Johar, Co-Founder and Product Director, Compcarta Solutions Pvt Ltd

“We Let Designers Focus on Innovation, Not Infrastructure.”- Seema Johar, Compcarta Solutions

0
In an exclusive interview, Seema Johar of Compcarta speaks with EFY’s Akanksha Sondhi Gaur about why setting up an EDA environment can be harder...