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Govt to Invest ₹4,500 Crore to Modernise Semi-Conductor Laboratory (SCL) Mohali, Boosting India’s Chip Manufacturing

SCL, India’s only integrated device manufacturing facility, will expand production, support startups with tape-out facilities, and train over 300 students using advanced EDA tools under the ₹4,500 crore modernisation plan.
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New Delhi: The Indian government has announced plans to invest ₹4,500 crore over the next three years to modernise the state-owned Semi-Conductor Laboratory (SCL) in Mohali, Union Minister Ashwini Vaishnaw said on Friday. This investment is part of a broader effort to strengthen India’s semiconductor ecosystem and support the development of cutting-edge technologies.

About SCL: India’s Only Integrated Device Manufacturing Facility

Semi-Conductor Laboratory (SCL) operates as an autonomous body under the Ministry of Electronics and Information Technology (MeitY). It is currently the only integrated device manufacturing facility in India providing end-to-end solutions for developing Application Specific Integrated Circuits (ASICs), opto-electronic devices, and Micro Electro Mechanical System (MEMS) devices.

The facility plays a key role in designing, prototyping, and manufacturing semiconductors, enabling both government projects and private startups to access high-quality chip development resources domestically.

Read also: India Just Unveiled ARKA GKT-1 — A Silicon Marvel Designed for AI, Smart Cities & High-Efficiency Energy

Expansion and Modernisation Plans

Minister Vaishnaw highlighted that SCL will undergo significant modernisation over the next three years with the planned ₹4,500 crore investment. Production at SCL is expected to increase 100 times, with a major upgrade in technology to replace decades-old processes.

The minister also emphasized that there are no plans to privatise the facility, ensuring that SCL remains a government-run entity critical to India’s semiconductor ambitions.

To support this expansion, the Punjab government has been requested to provide a 25-acre parcel of land, which will allow for larger manufacturing and development facilities at SCL Mohali.

Support for Startups and Skill Development

One of the key initiatives under the modernisation plan includes establishing a “tape out facility” at SCL. This facility will enable startups to send final chip designs to the manufacturing unit after completing the design phase, accelerating product development and commercialisation.

Currently, over 300 university students, undergraduates, and research fellows are utilising the world’s latest Electronic Design Automation (EDA) tools at SCL for chip design. These tools are essential for designing integrated circuits (ICs) and printed circuit boards (PCBs), and the modernised SCL is expected to significantly expand access to these advanced resources.

SCL’s Role in Realising India’s Semiconductor Vision

Minister Vaishnaw noted that the modernisation of SCL is aligned with Prime Minister Narendra Modi’s vision for India’s semiconductor ecosystem. The upgraded facility will not only support research and development but also strengthen domestic manufacturing capabilities, reducing dependence on imports and fostering innovation in chip design and production.

About Semi-Conductor Laboratory (SCL)

Semi-Conductor Laboratory (SCL), under the Ministry of Electronics and Information Technology, is India’s only integrated device manufacturing facility providing end-to-end solutions for ASICs, opto-electronic devices, and MEMS devices. SCL supports government projects, research institutions, and startups with chip design, fabrication, and testing facilities, playing a pivotal role in building India’s self-reliant semiconductor ecosystem.

Read also: Govt Approves 17 Electronics Component Manufacturing Projects Under ECMS, Rs 7,172 Crore Investment to Boost ‘Make in India’


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