Semi-Conductor Laboratory (SCL), India’s first chip fabrication unit, has initiated the process of upgrading its facilities. The company has invited bids to modernize its existing 180-nanometre (nm) fabrication line at an estimated cost of Rs 4,000 crore. This upgrade involves replacing outdated equipment and enhancing the production capacity of its 8-inch fab, which currently operates at 700 wafers per month (WSPM). The goal is to increase this capacity to 1500 WSPM.
The modernization will address the high repair and maintenance costs, currently around Rs 127 crore annually, by replacing decades-old equipment and improving overall efficiency. The project will also require modifications to SCL’s cleanroom and utility systems to accommodate upgraded tools. This move is expected to attract global semiconductor tool suppliers like Applied Materials, Synopsys, KLA, and others.
SCL is conducting a two-stage bidding process, beginning with the submission of technical bids, followed by commercial bids for those who qualify. The deadline for submitting bids is April 1, with the final implementation planned for June after the bidders are selected.
The project’s scope is divided into three bid packages: the first focuses on gap analysis, cleanroom, and utility upgrades; the second involves the supply and qualification of technology intellectual properties; and the third covers the implementation of a Manufacturing Execution System (MES) and automation of equipment.
To qualify, bidders must have an average annual turnover of Rs 1,000 crore over the last three years and have successfully completed similar contracts. Bidders can apply individually or as part of a consortium of up to three members.
This upgrade is part of India’s larger semiconductor incentive scheme, with a Rs 76,000 crore allocation, aimed at positioning SCL to support design startups and ramp up R&D and prototyping. Additionally, the government is planning further investments to bring SCL’s capabilities up to global standards.
