This was just 13 years after tech giant Intel created the world’s first commercial microprocessor. And three years after Taiwan Semiconductor Manufacturing Company (TSMC), the chip giant that dominates the world today, began production.
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”.
