HCL Group may be planning an entry into India’s semiconductor space

20 Jul 2023 , 10:14 AM

According to a July 19 story in the Economic Times, The HCL Group is considering entering India’s booming semiconductor market.

According to a report in the newspaper, the HCL Group will likely make a proposal to the Centre soon for the establishment of an assembly, testing, marking, and packaging (ATMP) facility for semiconductors. According to reports, the project will cost $200–300 million. 

According to senior corporate officials, HCL Group, not HCLTech, the group’s $12.6 billion IT exports division, is in charge of this large-scale initiative.

According to reports, HCL plans to submit a standard operating procedure (SOP) application as part of the $10 billion semiconductor incentive programme. The central and state governments provide subsidies under this programme, paying up to 75% of the capital costs paid by businesses establishing semiconductor facilities in India.

The most recent development occurred shortly after Micron announced early in July that construction will begin at its Gujarat semiconductor factory in August. The chip manufacturer announced an investment of $825 million to build an Outsourced Assembly and Test (OSAT) facility in Gujarat’s Sanand. The project has received a total of $2.75 billion in funding. The Gujarat state government and the Centre are partners in Micron’s initiative, which is set to propel India’s chip manufacturing industry forward.

Given the company’s relationship with chipmakers like Intel, the group’s most recent decision to enter the semiconductor manufacturing industry is being viewed as an organic growth strategy.

HCL has a strong global presence in the semiconductor industry, where it offers lithography, etching, Ion implant, assembly, and packaging services in addition to testing.

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