As per a report released on July 19, the HCL Group is contemplating the possibility of venturing into India’s growing semiconductor industry. It is anticipated that the group will present a proposal to the government to set up an assembly, testing, marking, and packaging (ATMP) facility for semiconductors, with an estimated project value ranging from $200 to $300 million. It’s worth noting that the ambitious project is led by the HCL Group and not its IT exports arm, HCLTech, which has a valuation of $12.6 billion.
All About HCL Group Semiconductor Venture
Sources suggest that HCL plans to apply for standard operating procedures (SOPs) under the $10 billion semiconductor incentive program, which offers subsidies from the central and state governments covering up to 75% of the capital expenditure for semiconductor facilities established in India.
This development follows closely after Micron’s announcement in early July to commence construction of its semiconductor unit in Gujarat. Micron intends to invest $825 million in establishing an Outsourced Assembly and Test (OSAT) facility in Sanand, Gujarat, as part of a $2.75 billion project. Micron’s collaboration with the central and Gujarat state governments is expected to propel India’s chipmaking sector.
India’s semiconductor industry has been experiencing significant growth, bolstered by the government’s mission to build a robust semiconductor ecosystem. The Semicon India Programme, introduced under the India Semiconductor Mission (ISM) in December 2021, aims to develop the semiconductor and display manufacturing ecosystem with a financial outlay of ₹76,000 crore. The program was later modified and relaunched as the ‘Modified Semicon India Programme’ in September 2022 to enhance its competitiveness.
Given the ongoing trade tensions between the US and China, as well as global semiconductor supply chain disruptions, this is an opportune time for India to strengthen its chipmaking capabilities. International chipmakers are increasingly considering India as a favourable location for their manufacturing units.
HCL’s decision to venture into semiconductor manufacturing aligns with its existing presence in the semiconductor space, where it provides lithography, etching, ion implantation, assembly, packaging, and testing services globally. In fact, HCL was previously reported to be exploring a stake in ISMC Analog, a semiconductor wafer fab applicant planning to establish a $3 billion fab near Mysuru in Karnataka.
