The Semi-Conductor Laboratory (SCL) in Mohali, India, has recently announced its initiative to provide comprehensive support for chip design start-ups. This move is significant as it addresses the challenges faced by fabless start-ups, which typically rely on global foundries for chip production, often incurring high costs and logistical difficulties.

As part of modernisation of Semi-Conductor Laboratory (SCL) Mohali, the government has cleared a ₹2,000-crore funding plan for the chip unit to improve its existing 180 nanometre (nm) fabrication line.

SCL will offer a range of services aimed at facilitating the entire chip development process, including:

Utilizing its 180 nm technology, SCL will enable start-ups to fabricate their designs locally. The laboratory will assist in testing the chips and providing packaging solutions, which are critical for ensuring reliability and performance.

Start-Ups will have the opportunity to evaluate their designs in a real-world setting, allowing them to identify potential manufacturing challenges early in the process.

This initiative is particularly beneficial for start-ups have previously struggled with this hi-tech process, these are some of the challenges faced by such start-ups: Engaging global foundries can be prohibitively expensive, especially for small-scale productions. The ability to conduct failure analysis and testing locally enhances the development cycle and reduces time-to-market. SCL plans to offer space within its facilities for start-ups to develop their intellectual property, fostering innovation and collaboration.

SCL's director general, Kamaljeet Singh, emphasized the importance of starting with 180 nm technology as a foundation before progressing to more advanced nodes. This strategic approach aims to build confidence among start-ups as they navigate the complexities of semiconductor design and manufacturing.

Additionally, SCL is exploring partnerships with start-ups to integrate their solutions into its operations, further enhancing the ecosystem for semiconductor innovation in India. The government has also approved several start-ups under its design-linked incentive scheme, indicating strong support for this burgeoning sector.

Restructuring Plan

Simultaneously, the plan to upgrade SCL’s chip technology to higher nodes such as 65 nm, 40 nm and 28 nm is in the works. The ministry of electronics and IT (MeitY) may soon invite proposals for the same from the companies, who can come on board as technology partners of SCL and help it upgrade its chip technology, officials said.

As part of the restructuring plan for SCL, the government’s plan is also to increase its current quantity of chip manufactured by 50 to 100 times. Further, SCL might also do a team rejig, like having a separate team for business development to cater to industry and start-ups with their products and pricing, according to officials.

The ₹2,000-crore approved funding is part of the ₹76,000-crore semiconductor incentive scheme. Earlier, the government had announced $1 billion (around ₹8,000 crore) for SCL’s modernisation. However, the outlay is expected to go up looking at the government’s plan to make it on par with global standards, to support start-ups and industry for R&D and prototyping, as well as increase its capacity.

Performance, price and cycle time are the key things that matter in semiconductor processes. For SCL, these are the areas that need improvement as start-ups or any private player would definitely analyse this before choosing SCL or global foundries. Semiconductor players worldwide have a cycle time of about 3-4 months, whereas SCL is lagging.

Analysts said it is crucial for the government to use SCL for commercial purposes given that start-ups and other players have to go to players like TSMC, Global Foundries, to get even limited samples of chips before actual production can start. This not only entails huge costs but also limits their ability to do failure analysis, testing and identify any challenges in manufacturing or assembly first hand.