According to a July 19 story in the Economic Times, The HCL Group is considering entering India’s booming semiconductor market.
According to a source in the newspaper, the HCL Group would likely make a proposal to the Center shortly 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 top 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 Group plans to submit a standard operating procedure (SOP) application as part of the $10 billion semiconductor incentive scheme. The national and state governments provide subsidies under this program, 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 would 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 initiative that Micron is working on in conjunction with the Center and the Gujarat state government is projected to accelerate the expansion of India’s chip manufacturing industry.
India’s desire for semiconductors
For the past few years, India’s semiconductor industry has experienced rapid expansion. Additionally, its development is supported by the Narendra Modi administration’s bold plan to create the biggest semiconductor ecosystem in the world in India.
In December 2021, the Center unveiled the ambitious Semicon India Program as part of the India Semiconductor Mission (ISM) to expand India’s semiconductor and display manufacturing industries. The budget for this program is Rs. 76,000 crore.
To increase its competitiveness, this programme was amended in September 2022 and reintroduced as the “Modified Semicon India Programme.”
Given the ongoing Sino-US trade dispute and the crippled global semiconductor supply chain, this is an ideal time for the nation to solidify its chipmaking foundation. Additionally, international chipmakers are increasingly considering India as the next major location for their production facilities.
Given the company’s relationship with chipmakers like Intel, the group’s most recent move to enter the semiconductor manufacturing industry is being viewed as an organic growth plan.
According to a source from last November, the corporation is considering buying a stake in semiconductor wafer fab contender ISMC Analogue. It has chosen an electronics cluster close to Mysuru, Karnataka, to build a $3 billion fab.
HCL Group 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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