Joint venture with commercial fabrication partner a possibility
Description
The Semiconductor Lab (SCL) at Mohali, the only government-owned semiconductor fabrication unit, will be one of the beneficiaries of the Central Government’s $10 billion
semiconductor incentive package.
The government plans to modernise and upgrade it for making semiconductors, which are used in display panels of smartphones, laptops, TV screens, weapon systems and
automobiles. For the modernisation plan, the Ministry of Electronics and Information Technology (MeitY) has floated a request for proposal (RFP). The SCL was handed over to MeitY
in February this year from the Department of Space.
The SCL started production in 1984 but was devastated by a mysterious fire in 1989 and thereafter never recovered fully. It produces chips for strategic purposes. For instance, a 180-
nanometre chip, along with other chips researched and fabricated at the SCL, have been used to power the country’s Mars Mission.
According to the RFP, the selected bidder will act as an adviser and also be responsible for identification of business partner for modernisation and commercialisation of the SCL. As
per the terms of the RFP, the bidders shall strategise the execution roadmap. Besides, the bidders also need onboard a commercial partner for the fabrication of chips developed by
the SCL.
“The bidders will also be responsible for development of business plan, go-to-market strategy and design of operating model, including identification and assessment of top list of
potential partners (both Indian and global) across the semiconductor value chain,” said sources.
“The SCL is responsible for design and development of very-large-scale integration (VLSI) devices and development of systems for the telecommunication and space sectors. The
government is modernising the existing SCL as part of the effort to set up a latest manufacturing facility for making semiconductors,” said Rajya Sabha member Vikramjit Singh.
On December 15, 2021, the Union Cabinet accorded approval for the modernisation and commercialisation of the SCL, which includes exploration of the possibility for a joint venture
(JV) with a commercial fabrication partner(s) to modernise the brownfield fabrication facility.
Semiconductor lab Timeline
1984: SCL starts production
1989: Unit consumed by mysterious fire
1997: Restarted again
2006: Converted to Semiconductor Laboratory under the Department of Space from Semiconductor Complex Ltd
2021: Cabinet accords approval for modernisation
2022: Handed over to MeitY from the Department of Space
Source: The Tribune
