HCL Group plans to invest $300 mn in a semiconductor facility in India

Home
Industry News
HCL Group plans to invest $300 mn in a semiconductor facility in India

HCL Group plans to invest $300 mn in a semiconductor facility in India

Industry News
Jul 21,23

The HCL Group is preparing to venture into the rapidly evolving semiconductor ecosystem and is on the verge of submitting a proposal to the government to establish a semiconductor unit.

HCL Group plans to invest $300 mn in a semiconductor facility in India

According to several officials and industry executives, the HCL Group, founded by Shiv Nadar, is preparing to make a significant entry into India's rapidly evolving semiconductor ecosystem. Originally known for manufacturing computer hardware and peripherals, the group later established its global reputation in software services.

Sources reveal that the HCL Group is now in the advanced stages of developing a proposal to the Indian government for the establishment of an assembly, testing, marking, and packaging (ATMP) unit dedicated to semiconductor manufacturing. This ambitious project is estimated to require an investment in the range of $200-$300 million.

By venturing into the semiconductor space, HCL will be joining the ranks of other major players like Micron, which recently announced an $825-million investment for an Outsourced Semiconductor Assembly and Test (OSAT) plant in Gujarat, with the cumulative investment in the project reaching $2.75 billion.

When questioned about their plans, an HCL Group spokesperson responded that the company regularly evaluates investment opportunities and discloses relevant details as progress is made.

For HCL to integrate into the semiconductor value chain effectively, forming a strategic partnership with a chip manufacturer will be crucial. A senior government official emphasized this point, noting that HCL must collaborate with a company whose chips will be packaged at their ATMP unit. To secure incentives under the India Semiconductor Mission, the company will have to submit a business model to the government.

Discussions between HCL and the government regarding the proposal are currently underway, as confirmed by another official. ATMP/OSAT units play a vital role in the semiconductor manufacturing process as they undertake essential tasks such as testing and packaging silicon chips.