December 10, 2023
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HCL Group Evaluates $300 Million Entry into India’s Semiconductor Industry

According to a report in the Economic Times on July 19, the HCL Group is considering entering India’s expanding semiconductor industry. The group is expected to submit a proposal to the government for establishing an assembly, testing, marking, and packaging (ATMP) facility for semiconductors, with an estimated investment of $200-300 million. It is worth noting that this initiative is led by the HCL Group itself, not its IT exports arm, HCLTech, which has a market value of $12.6 billion.

HCL is planning to apply for the semiconductor incentive program, which offers subsidies covering up to 75 percent of the capital expenditure for semiconductor facilities in India. This program is supported by the central and state governments.

This announcement follows closely after Micron’s recent plan to build a semiconductor unit in Gujarat, India. Micron is investing $825 million in an Outsourced Assembly and Test (OSAT) facility, with a total project investment of $2.75 billion. This collaboration between Micron, the central government, and the Gujarat state government is expected to drive the growth of India’s chipmaking sector.

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