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HomeBusinessHCL Group planning $300 Million Semicon foray, say sources.

HCL Group planning $300 Million Semicon foray, say sources.

The fast-evolving semiconductor ecosystem in India is the target of an ambitious entry by the Shiv Nadar-founded HCL Group, which started out decades ago as a manufacturer of computer hardware and peripherals before establishing its software credentials abroad.

They continued by saying that the HCL Group was almost ready to present a proposal to the Centre for the establishment of an assembly, testing, marking, and packaging (ATMP) unit for semiconductors. The project could cost between $200 and $300 million.

HCL will join the ranks of businesses like Micron, which recently declared an investment of $825 million for an Outsourced Semiconductor Assembly and Test (OSAT) plant in Gujarat’s Sanand. The project has received a total of $2.75 billion in funding.

“From time to time, the Group receives and assesses investment possibilities. Based on real progress, we report these at the appropriate time, an official informed Media.

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HCL Must Get Into Semiconductor Business:

The HCL Group must now establish a chip alliance in order to move up the semiconductor value chain.

According to a senior government official, “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,” adding that the company would have to submit a business model to the government in order to receive incentives under the India Semiconductor Mission.

Another official affirmed that discussions over the idea are still taking on between the company and the government. Due to their ability to perform the essential functions of silicon chip testing and packing, ATMP/OSAT machines are a significant link in the semiconductor production process.

The $12.6 billion IT exports division of the HCL Group, HCLTech, however, is not actively driving this venture, according to the officials.

Since Foxconn opted to abandon its intended joint venture with the Vedanta Group, India’s semiconductor endeavor has gained media attention. The business would have signaled India’s entry into the global chip manufacturing market, potentially lowering reliance on Northeast Asia, which holds a virtual monopoly in the value grid for semiconductor manufacture. Under the $10 billion semiconductor incentive plan, HCL will submit an application for sops.

The national and state subsidies under this programme can amount to as much as 75% of the capital costs incurred by businesses who establish chip manufacturing units in the nation.

One of the representatives suggested that since HCL already provides software services to chip manufacturers like Intel on a global scale, it may be strategically advantageous for them to enter the nation’s semiconductor manufacturing ecosystem.

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