To upgrade Mohali’s outdated chip-making facility into a modern semiconductor hub, Tata and Tower Semiconductor are reportedly neck-and-neck to win a ₹240 billion contract.
Tata Semiconductor and Israel’s Tower Semiconductor have emerged as the frontrunners in a ₹240 billion initiative to modernise the state-run Semi-Conductor Laboratory (SCL) in Mohali, according to an exclusive report by Mint.
The two firms were shortlisted after successfully clearing the technical bid stage, which assessed their capabilities to meet the project’s stringent technical criteria. They will now compete in the financial bid phase, with the winner taking on a significant part of the three-package project.
The selected company will overhaul SCL’s ageing 180-nanometre (nm) fabrication line, replacing outdated machinery and integrating advanced equipment to increase production capacity from 500-600 to 1500 wafers per month.
Long-term maintenance, equipment installation, and commissioning will also form core responsibilities under the contract.
The report stated that Tata and Tower are vying for ‘Package 1’, which represents the largest cost component of the tender. The other two packages, focused on technology transfer and software for equipment automation, are still under evaluation, with winners to be announced soon.
Tower Semiconductor is already a technology partner at SCL, supporting its 8-inch fab line operations. Despite being based on older 180nm tech, such chips are vital for defence, aerospace, medical, and industrial applications.
The modernisation falls under the larger ₹2.76 trillion India Semiconductor Mission (ISM), which will soon see a new funding phase to support additional chip projects.
