**Tata Group and US Firm Secure ₹4,500 Crore Semiconductor Project**
**Meta Description:** Tata Group and a US chip design company win a ₹4,500 crore project to modernize India’s only semiconductor fabrication plant in Mohali.
**URL Slug:** tata-group-us-firm-semiconductor-project
**India’s Semiconductor Fabrication Plant Set for Major Upgrade**
In a significant development for India’s semiconductor industry, two domestic companies, including a Tata Group subsidiary, and a major US chip design firm have been awarded a ₹4,500 crore project aimed at modernizing the Semi-Conductor Laboratory (SCL) in Mohali. This initiative is crucial for enhancing the production of advanced industrial chips that are essential for critical sectors such as power and energy.
On Thursday, Tata Semiconductor Manufacturing Pvt. Ltd, Cyient Semiconductors Pvt. Ltd, and the Singapore subsidiary of Applied Materials were announced as the winners of three distinct segments of the modernization project. The Ministry of Electronics and IT will oversee the initiative, which is being funded through the initial phase of the India Semiconductor Mission.
Tata Semiconductor secured the first bid package, which focuses on upgrading SCL Mohali’s outdated 8-inch complementary metal oxide semiconductor (CMOS) wafer fabrication facility. The size of the semiconductor wafer is pivotal in determining the efficiency of chip production, with modern facilities typically utilizing 12-inch wafers to optimize manufacturing processes.
Cyient Semiconductors was awarded the second bid package, which involves providing patented technologies for the production of radio-frequency integrated circuits and chips that facilitate imaging and power management. The modernization of SCL Mohali’s fabrication equipment, including the necessary software for new machinery, has been entrusted to Applied Materials.
Before the project can commence, it requires formal approval from the Union cabinet. However, a senior official indicated that the modernization efforts at SCL Mohali are expected to begin within weeks. Currently, SCL produces only 180-nanometre (nm) chips, which are considered outdated and primarily used in specific applications within space, defense, and energy sectors. Following the upgrades, the facility is anticipated to transition to manufacturing more advanced industrial chips in the 28-65 nm range, which are more relevant for contemporary industrial applications.
Union IT Minister Ashwini Vaishnaw recently emphasized that the modernization of SCL Mohali will not lead to its privatization. Established in 1976 and operational since 1984, SCL remains India’s sole semiconductor fabrication plant. In parallel, Tata Electronics, the parent company of Tata Semiconductor Manufacturing Pvt. Ltd, is also developing India’s first private chip fabrication facility in Dholera, Gujarat.
Vaishnaw noted that once the upgrades are complete, SCL Mohali will play a vital role as a fabrication resource for startups in India. He also proposed the formation of a consortium involving the Centre for Development of Advanced Computing (C-DAC), the Defence Research and Development Organisation (DRDO), and SCL to bolster indigenous chip design and manufacturing capabilities.
**FAQ**
**What is the significance of the ₹4,500 crore project for India’s semiconductor industry?**
The project aims to modernize India’s only semiconductor fabrication plant, enabling the production of advanced chips that are crucial for various critical sectors, thereby enhancing India’s self-reliance in semiconductor manufacturing.
