Tata, Israel's Tower Vie for Mohali Chip Factory Makeover

Tata Semiconductor and Israel's Tower Semiconductor have been shortlisted from among nearly a dozen companies for a substantial portion of the ₹4,000-crore project to revamp the state-run chip research and manufacturing facility Semiconductor Laboratory (SCL) in Mohali, according to two government officials aware of the development and documents seen by Mint.

- Jatin Grover

Having qualified in the technical bid, which evaluated their capability and expertise to deliver the project as per technical requirements, the two contenders will now move on to the financial bid stage where a winner will be picked.

The project includes identifying the upgrades needed to improve SCL's existing 180-nanometer (nm) fabrication line. The selected company will plan how to integrate advanced equipment in the fabrication line to boost production capacity, while replacing decades-old machinery requiring frequent repair and maintenance.

The selected company will also be responsible for outlining the requirements for future installation, testing, commissioning, and supply of equipment. Long-term maintenance support will be another key responsibility in the primary component of the contract, according to the tender document.