New Delhi, July 10 -- A 26-acre land parcel near the existing chip research and manufacturing facility, the Semi-Conductor Laboratory (SCL) in Mohali, has emerged as a potential hurdle in the Centre's plan to modernise the decades-old plant with advanced chip technology.

Owned by the Punjab government, the land was identified by the Centre-run facility over a year ago for its expansion and adding new fabrication lines. However, ongoing disputes over the land and a higher price of about Rs.700-800 crore demanded by the Punjab government are causing delays to the government's plans, two officials aware of the matter said on the condition of anonymity.

"The land is seen as key for expansion due to its proximity to the existing research and...