As per the ET report, HCL should soon submit a proposal to the federal government to set up a chip assembly, testing, marking, and packaging facility.
The enterprise is expected to see an investment of $200m (Rs16.4bn) to $300m (Rs24.6bn) by the company.
According to senior officials of HCL, the project is being led by HCL and not HCLTech, the group’s IT exports division.
HCL intends to apply for standard operating procedures under the $10bn semiconductor incentive programme.
In accordance with this programme, the federal and state governments provide subsidies that can account for up to 75% of the costs incurred by businesses building semiconductor facilities in India.
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Given the group’s ties with chipmakers such as Intel, its most recent decision to enter the semiconductor manufacturing sector is being viewed as an organic growth strategy.
HCL is said to have a strong global presence in the semiconductor industry, where it offers lithography, etching, Ion implant, assembly, and packaging services in addition to testing.
In November 2022, reports emerged that HCL is looking to buy a stake in ISMC Analog, a semiconductor wafer fab applicant.
Micron will invest $825m in the project and the remaining funds will be provided by both federal and state governments in India.