HCL Group planning $300 million semicon foray, say sources

economictimes.indiatimes.com:

HCL Group, which began decades ago as a maker of computer hardware and peripherals before establishing its software credentials globally, plans an ambitious foray into India’s fast-evolving semiconductor ecosystem, several officials and industry executives aware of the development told ET. The HCL Group is close to submitting a proposal to the Centre to set up an assembly, testing, marking, and packaging (ATMP) unit for semiconductors, they added.

The project may cost in the range of $200-$300 million.Also read | Chipping in: When, where and how HCL will be joining ranks with companies such as Micron that have recently announced a $825-million investment in the country for an Outsourced Semiconductor Assembly and Test (OSAT) plant at Sanand in Gujarat. The cumulative investment in the project is $2.75 billion.

“HCL Group receives and evaluates investment opportunities from time to time. We report these at the appropriate time based on meaningful progress,” an HCL Group spokesperson told ET.

Now, forging a chip partnership is key for the HCL Group to enter the semiconductor value chain. “They (HCL) plan to submit a proposal… But they will need to strike a partnership with a firm whose chips will be packaged at their unit," a senior government official said, adding that the company would have to submit a business model to the government to receive incentives under the India Semiconductor Mission.

Another official confirmed that talks are ongoing between the company and the government over the proposal. ATMP/OSAT units are an important link in the semiconductor manufacturing chain as they perform the crucial tasks of testing and packing silicon chips.Also read | Foxconn, Vedanta pull the plug on semiconductor JVGroup-Level