India’s HCL Group is looking to enter the country’s semiconductor industry, reported MoneyControl, citing Economic Times (ET).

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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

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.

Late last month, US chip maker Micron Technology said it plans to set up a $2.75bn semiconductor assembly and testing facility in India.

Micron will invest $825m in the project and the remaining funds will be provided by both federal and state governments in India.