Indian Government Invests ₹4,500 Crore to Upgrade Mohali Semiconductor Lab

The Indian government will invest ₹4,500 crore (approximately $540 million) over the next three years to modernise and expand the Semi-Conductor Laboratory (SCL) in Mohali. Union Ministers Ashwini Vaishnaw and Ravneet Singh Bittu announced the funding during their visit to the facility on March 15, 2024. The ministers confirmed that the SCL would remain a government-operated research and development institution, essential for the country’s semiconductor goals.

During the visit, Vaishnaw, who oversees multiple portfolios including Railways, Electronics and Information Technology, highlighted a formal request made to the Punjab Government for the allocation of 25 acres of land adjacent to the SCL. This space is vital for the next stage of expansion. “The faster the land is allocated, the quicker SCL’s growth will progress,” he stated.

Major Upgrades Planned for SCL

Vaishnaw detailed that the investment aims to overhaul production lines and introduce new tools, increasing fabrication capacity to 100 times the current wafer output. This upgrade represents the most significant enhancement in the SCL’s history. The Prime Minister has outlined a comprehensive strategy for the SCL as part of the India Semiconductor Mission, positioning the facility as a national hub for training, innovation, and fabrication for students, researchers, and start-ups.

“SCL will be modernised and it will not be privatised. A significant journey is ahead, and India is ready for it,” Vaishnaw declared. The ministers also celebrated the successful fabrication of 28 student-designed semiconductor chips, bringing the total to 56. These chips were developed using electronic design automation (EDA) tools available through the Chips to Start-up programme, which has seen participation from over 300 universities across the nation.

The ministers inaugurated the Semiconductor Process Gallery, a clean-room demonstration facility designed to provide students with a realistic manufacturing experience. Additionally, the newly established Abhyuthanam Training Block will offer a range of online and offline semiconductor training modules, as well as essential fire and safety training facilities. Vaishnaw emphasised that this extensive skill ecosystem would be a critical pillar supporting India’s semiconductor capabilities.

Strengthening India’s Semiconductor Ecosystem

On the strategic roadmap for the semiconductor industry, Vaishnaw indicated that India aims to enhance self-reliance in high-end electronics. This will involve a collaboration among national agencies such as the Centre for Development of Advanced Computing (CDAC) and the Defence Research and Development Organisation (DRDO) to focus on indigenous design, product development, and manufacturing of homegrown chips.

“Everyone involved has been informed clearly: SCL will remain a government organisation and will play a vital role in India’s semiconductor journey moving forward,” he added. The ministers underscored the transformative potential of the SCL’s upgrade, which will facilitate both commercial production and R&D activities.

Vaishnaw concluded by stating that the expansion of the SCL would significantly contribute to India’s burgeoning semiconductor ecosystem, which is essential for various critical sectors, including healthcare, transport, communications, defence, and space. “In just four years, India has transitioned from vision to reality. The world believes India will emerge as a major semiconductor hub,” he asserted.

The detailed briefings from SCL scientists during the ministers’ visit reinforced the government’s commitment to reposition the facility as a modernised, strategically significant, and globally competitive semiconductor manufacturing and R&D platform.