Tata, Israel's Tower Semiconductor among bidders for SCL Mohali revamp: Rpt

To enable SCL to manufacture modern chips, starting with 40 and 65 nm chips, the IT ministry had earmarked $1 billion for its modernisation

Nine companies have sent their bids to overhaul the government's Semiconductor Laboratory (SCL) in Mohali, Punjab. According to a report by The Economic Times (ET), citing people aware of the matter, the list of bidders includes the Tata Group, Israel's Tower Semiconductor, among others.

Set up in 1976, SCL Mohali began chip manufacturing in 1984. It is the only chip manufacturing unit in India that makes chips for defence and strategic purposes. Earlier, chips from the lab were used in the Chandrayaan mission.

It currently manufactures 180 nm node chips, which have only limited uses. To enable SCL to manufacture modern chips, starting with 40 and 65 nanometre chips, the IT ministry earmarked $1 billion for its modernisation. The expressions of interest were invited last year in September.

The development comes at a time when the Tata Group has announced its plans to set up a semiconductor manufacturing unit at Dholera soon. The commissioning is expected to start this year itself.

Tower Semiconductors also has been very keen to enter commercial chip manufacturing in India. Texas Instruments already has significant research and development (R&D) operations in the country. It was among the first ones to start R&D here. 

In its bid document, the Centre had specified that chips from SCL would continue to fulfil the needs of government agencies like the Indian Space Research Organisation (Isro). Moreover, the bidder will be required to meet the end-to-end set-up and operationalisation of the lab.

The financial bids are expected to be invited soon.