TCS, IBM, Applied Materials, KLA In Race To Modernise India’s State Chip Unit

India's government is accelerating efforts to modernize its state-owned Semi-Conductor Laboratory (SCL) in Mohali, with major global and domestic companies competing for a ₹4,000 crore modernization contract.
Prominent firms such as TATA Consultancy Services (TCS), IBM, Applied Materials, KLA Corporation, HCL Tech, and Israel-based Tower Semiconductors are expected to submit bids by April 16, 2025.
The modernisation aims to upgrade SCL’s existing 180-nanometer semiconductor production line to more advanced nodes, initially targeting legacy nodes of 65 nm and 40 nm. This effort is part of the broader $10 billion India Semiconductor Mission launched in 2021, which seeks to enhance India's semiconductor manufacturing capabilities and ecosystem. The facility currently produces semiconductors for strategic applications, including space missions like Chandrayaan and Mangalyaan.
The government plans to transform SCL into a commercially viable entity with expanded design, fabrication, testing, and packaging capabilities. Upgrades include adding non-volatile memory (NVM) technology and GaN-on-silicon capabilities for power electronics and low-power RF applications. SCL has also partnered with Belgium's IMEC for advanced GaN power technology.
This modernisation initiative is expected to play a pivotal role in advancing India's semiconductor aspirations by fostering research, prototyping capacities, and scaling talent within the industry.
Mint Report