MP Tewari flags delays, seeks audit of Semiconductor Laboratory Mohali in Lok Sabha

He pointed out that no comprehensive audit has been publicly disclosed on the losses, damages and recovery process following the devastating fire at the facility in 1989, nor on the subsequent decline in its technological capability. Tewari also flagged concerns over substantial public funds allocated over the past two decades for repair, modernisation and research and development, stating that these appeared either under-utilised or inadequately monitored.

“This raises serious questions of efficiency, oversight and accountability,” he said, adding that transparency was critical given the scale of public investment involved.

Referring to India’s ambitious semiconductor mission, the Congress MP urged the government to clearly spell out the current technology node, wafer size and production capacity of SCL, along with the approvals granted and timelines fixed for its long-promised upgrade. He also sought clarity on the role envisaged for the India Semiconductor Mission in reviving the Mohali-based facility.

Tewari further called for an independent performance and financial audit of SCL to ensure effective utilisation of public funds and to build the laboratory into a globally competitive semiconductor fabrication unit.

The SCL story

The Semi-Conductor Laboratory (SCL), located in Sector 71 of Mohali, Punjab, is India’s main government-run centre for making and testing computer chips. It functions under the Ministry of Electronics and Information Technology (MeitY) and plays an essential role in building the country’s capacity to design and manufacture semiconductors — the tiny electronic components that power modern devices and satellites.

SCL began in 1976 as Semiconductor Complex Limited, set up to help India reduce dependence on imported electronic chips. Mohali was chosen as the site over Mumbai because the Punjab government provided land at a nominal cost. Working with the US-based American Microsystems Inc., chip production started in 1984. However, a major fire in 1989 destroyed much of the complex and forced operations to halt for several years. While the cause of the fire was never clearly established though some hinted at sabotage, the lab restarted work in 1997 and later shifted its focus to research and design. In 2006, it came under the Department of Space and was renamed Semi-Conductor Laboratory, reflecting its new research orientation. In 2023, it was placed under MeitY to align with India’s larger semiconductor strategy.

Today, SCL is the only facility in India that can handle the full process of chip creation — from initial design and manufacturing to testing and packaging. Its chips are mainly used in defence, space, and communication projects, including India’s Chandrayaan and Mangalyaan missions. The lab produces older but highly reliable types of chips, preferred for satellites and military use because they can withstand high radiation and harsh conditions. It also supports universities and startups by fabricating student-designed chips and small experimental projects.

SCL is currently being upgraded under the Rs 76,000-crore India Semiconductor Mission, which aims to make India self-reliant in semiconductor production. Around Rs 4,500 crore has been allocated to modernize SCL with new equipment, increase its capacity, and introduce newer technologies. Partnerships with Indian companies like Tata and Cyient, as well as global firms such as Applied Materials, are helping with technology transfer and skill development. The goal is to increase production, train new talent, and make SCL a hub for chip-making and research, all while remaining under full government control.