HCLTech, Tata Electronics, Israel-based Tower Semiconductor, and Belgium-based IMEC, among other companies, are in discussions with Semi-Conductor Laboratory (SCL) Mohali for the modernisation of its operations, aiming to enhance technological capabilities and efficiency.
The companies are first exploring opportunities to revamp the existing SCL facility, which could be a Rs 4,000 crore opportunity for them upon meeting the technical and commercial eligibility. The same is also expected to open up revenue opportunities for companies such as Applied Materials, which are suppliers of semiconductor machineries.
Queries sent to HCLTech and Tata Electronics did not elicit any response till the time of going to the press.
Many companies are showing interest and a pre-bid meeting is scheduled for March 11, officials said, adding that the first step towards modernising SCL involves revamping existing fabrication line. The work involves gap analysis, technology transfers, replacement of decades-old equipment, and cleanroom modifications.
Post the revamp, SCL has plans to add lower semiconductor technology nodes such as 65 nm, 40 nm, and 28 nm, for which it would require a technology partner as well as new land to add fabrication lines, officials said.
One of the hurdles for SCL to add lower nodes is the transfer of technology for the same. Notably, Tata group’s partnership with Powerchip Semiconductor Manufacturing Corporation (PSMC) to manufacture chips in lower nodes, can help SCL with the technology, officials said.
Last week, SCL invited bids to improve the existing 180 nanometre (nm) fabrication line. The focus of the upgradation is also to increase the current production line capacity to 1500 WSPM (wafer starts per month) from about 700 WSPM, currently.
According to the tender document, the scope of work is divided into three bid packages. The first package involves gap analysis and detailed study to determine precise requirements for augmentation including the cleanroom and utilities sources. It also involves a comprehensive annual maintenance contract for five years, which can be extended up to three more years, for existing equipment and supplied equipment and upgrades post-warranty.
The second package includes supply and qualification of three technology intellectual properties (IPs) such as Radio frequency CMOS, and design enablement on the existing SCL process for 8-inch line as part of technology transfer.
The third package includes supply and implementation of manufacturing execution system (MES) along with equipment automation. Bidders can bid for one or more packages based on the eligibility criteria.
Currently, for the 180 nm technology, SCL has Tower Semiconductor as its technology partner. At the SCL campus, a team of Tower also takes care of the maintenance work for the 8-inch fab line.
An 8-inch fab line primarily processes silicon wafers that are 8 inches in diameter. The wafer diameter defines the number of semiconductor chips that can be produced from a single wafer.
Modern fabrication units are currently working with 12 inch wafer.
So far, SCL has been serving strategic sectors like space and satellites, railways, and telecom, among others by supplying them 180 nm chips.
For modernisation of SCL, the government has set aside Rs 400 crore in FY26. Around Rs 900 crore was allocated for SCL modernisation in FY25. However, the actual spend was Rs 11 crore.