HCL Group, a prominent conglomerate, is gearing up to make a significant entry into India’s rapidly expanding semiconductor industry. The company is set to submit a proposal to establish an assembly, testing, marking, and packaging (ATMP) facility for semiconductors, with the project expected to cost between $200 to $300 million. As a key player in this ambitious venture, HCL Group is taking the lead, distinct from its IT exports wing, HCLTech. Moreover, the company is seeking incentives under the $10-billion semiconductor incentive program, designed to encourage investments in semiconductor facilities in India.
HCL Group’s Ambitious Venture
According to a report published on July 19 in the Economic Times, HCL Group is actively considering entering India’s burgeoning semiconductor space. The proposal for the ATMP facility for semiconductors is on the company’s radar, signaling its intent to contribute to the country’s semiconductor manufacturing capabilities. This significant investment, projected to be around $200 to $300 million, highlights the group’s commitment to strengthening India’s semiconductor ecosystem.
Seeking Incentives through Semiconductor Incentive Program
To support its ambitious plans, HCL Group is set to apply for incentives under the $10-billion semiconductor incentive program. This program, jointly facilitated by the central and state governments, offers subsidies to companies establishing semiconductor facilities in India. These incentives can cover up to 75 percent of the capital expenditure, providing a favorable investment environment for HCL Group’s foray into the semiconductor space.
Distinct from HCLTech’s IT Exports Wing
It is essential to note that HCL Group’s semiconductor venture is separate from its IT exports wing, HCLTech. While HCLTech has thrived as a major player in the IT industry, HCL Group is now eyeing opportunities in the semiconductor sector, showcasing the group’s diversification and commitment to exploring new avenues of growth and innovation.
Micron’s Role in India’s Chipmaking Space
HCL Group’s move comes at an opportune time, closely following Micron’s recent announcement in early July. Micron, a renowned chipmaker, revealed its plans to invest $825 million in an Outsourced Assembly and Test (OSAT) facility at Sanand in Gujarat, India. This collaborative project with the Centre and the Gujarat state government will see a total investment of $2.75 billion, contributing significantly to India’s chip production capabilities.
As India’s semiconductor industry continues to experience rapid growth, HCL Group is poised to make a substantial contribution by establishing an assembly, testing, marking, and packaging facility for semiconductors. The company’s bold venture, estimated at $200 to $300 million, reflects its commitment to strengthening the country’s semiconductor manufacturing capabilities. Additionally, seeking incentives under the $10-billion semiconductor incentive program further demonstrates HCL Group’s determination to drive innovation and growth in India’s semiconductor space. With the recent developments in Micron’s chipmaking project, India’s semiconductor industry is set for accelerated growth, opening up new opportunities for domestic and global players alike.