Semi-Conductor Laboratory (SCL) has invited bids for a Rs 4,000-crore modernization of its 180-nanometer semiconductor fabrication facility. The project aims to replace outdated equipment and increase production capacity from 700 to 1,500 wafer starts per month (WSPM).
SCL’s upgrade project is divided into three bid packages:
- Gap Analysis and Equipment Maintenance: Conducting a detailed study to determine requirements for augmentation, including cleanroom enhancements, and providing a comprehensive annual maintenance contract for up to eight years.
- Technology Transfer: Supplying and qualifying three technology intellectual properties, such as Radio Frequency CMOS, and enabling design on the existing SCL process for the 8-inch line.
- Manufacturing Execution System Implementation: Supplying and implementing a manufacturing execution system along with equipment automation.
Bidders can participate individually or as part of a consortium of up to three members. Eligibility criteria include an average annual turnover of at least Rs 1,000 crore over the past three audited financial years. The earnest money deposit varies by package, ranging from Rs 50 lakh to Rs 25 crore. The bid submission deadline is April 1, with implementation expected to commence in June after bidder selection.
This modernization effort is part of the Rs 76,000-crore semiconductor incentive scheme, aiming to elevate SCL’s facilities to global standards and support research and development, prototyping, and increased production capacity. Plans are also underway to upgrade SCL’s technology to advanced nodes such as 65 nm, 40 nm, and 28 nm.
This initiative aligns with India’s broader strategy to enhance its semiconductor manufacturing capabilities. In February 2024, the Union Cabinet approved the establishment of three semiconductor fabrication units with a combined investment of Rs 1.26 lakh crore. These projects, led by entities such as Tata Group and Japan’s Renesas, are expected to reduce import dependency and position India as a significant player in the global semiconductor market.
Additionally, in February 2025, U.S.-based Lam Research announced plans to invest over Rs 100 billion in Karnataka to support India’s semiconductor ecosystem. This investment is part of a memorandum of understanding with the Karnataka Industrial Area Development Board, reflecting growing global interest in India’s semiconductor sector.
These developments underscore India’s commitment to strengthening its semiconductor manufacturing capabilities, reducing reliance on imports, and fostering a robust domestic semiconductor industry.