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India Today
3 days ago
- Business
- India Today
How the SCL fire in Mohali sabotaged India's chip dreams
On February 7, 1989, an unexplained fire at the Semiconductor Complex Limited (SCL) in Mohali, Chandigarh, destroyed the facility's main production line. Established in 1976 to build indigenous Indian chips, SCL began production in 1984 and was manufacturing 5000-nanometre (nm) chips, just one generation behind global standards at the was only 13 years after Intel introduced the world's first commercially available microprocessor and three years before chip giant Taiwan Semiconductor Manufacturing Company (TSMC) began production. Despite being a state-owned enterprise, SCL had made impressive strides. It was also engaged in research and development, working on more advanced semiconductors. The fire scorched that cause of the fire was never officially determined, but theories abound. Some attribute it to an accident, while others suspect sabotage. A key finding—that the fire had ignited at multiple points simultaneously—lent weight to the sabotage theory. The blaze caused losses estimated at Rs 75 crore in 1989. But the true cost the nation would pay would be known decades later. In 2024, India imported semiconductor chips worth $20 billion (Rs 1.71 lakh crore), with imports rising 18% annually. Semiconductors are now ubiquitous, powering everything from smartphones to moon missions, televisions to cruise took SCL nearly a decade to resume operations. By the time it reopened in 1997, the world had moved far ahead. In 2000, the government's efforts to divest part of SCL's equity were stalled by disagreements with potential private investors over terms. Bureaucratic delays further impeded 2006, the government restructured SCL as a research and development centre under the Department of Space, renaming it "Semiconductor Lab." In early 2023, SCL was shifted to the Ministry of Electronics and Information Technology (MeitY). Today, it produces 180-nm chips solely for defence, space, and other strategic applications deemed too sensitive for imports. (In contrast, TSMC manufactures 3-nm chips and is advancing to 2-nm chips in 2025.)India's quest for mass-produced, indigenous chips finally gained momentum in 2022 with the launch of the India Semiconductor Mission, backed by a Rs 76,000 crore August 2025, the government had approved 10 projects with investments worth Rs 1.60 lakh crore across six states. India is clearly not putting all its chips in one August 15, 2025, Prime Minister Narendra Modi announced that India would produce its first semiconductor chip by the end of the year. Like the mythical phoenix, India's chip dream is set to rise from the ashes.- Ends
India.com
3 days ago
- Business
- India.com
That mysterious fire...which destroyed India's semiconductor dream, what exactly happened on February 7, 1989?
That mysterious destroyed India's semiconductor dream, what exactly happened on February 7, 1989? On February 7, 1989 the story of India's story on semiconductor changed completely and the sector faced . On this day a mysterious fire at Semiconductor Complex Limited in Mohali, Chandigarh destroyed the production line at this plant which was established in 1976 to make indigenous chips. This semiconductor plant started production in 1984 and was manufacturing 5000 nanometer chips. In terms of technology and performance, these chips were then only one generation behind other countries of the world. What was the cause of the fire? The cause of the fire was never officially known, but there are many theories behind it. Some believe it was an accident, while others believe it was a conspiracy. One of the major findings of the investigation into the fire was that the fire occurred simultaneously at several places in the plant, giving credence to the conspiracy theory. The fire in 1989 caused a loss of Rs 75 crore. But the country had to pay its real price decades later. In 2024, India imported semiconductor chips worth $20 billion (Rs 1.71 lakh crore). The country's imports are growing 18% every year as semiconductors are needed everywhere. Chips power everything from smartphones to lunar rockets and televisions to cruise missiles. It took almost a decade for SCL to resume its operations. And when the company finally reopened in 1997, it was already lagging behind the rest of the world. In 2000, the government's attempts to sell a part of SCL's equity failed due to differences with potential private investors over terms. Bureaucratic delays also played a big role in hampering progress. In 2006, the government decided to reorganise the company as a research and development centre under the Department of Space and renamed it 'Semiconductor Lab'.
