The Shiv Nadar-founded HCL Group, which started out decades ago as a manufacturer of computer hardware and peripherals before establishing its software credentials globally, plans an ambitious foray into India's rapidly developing semiconductor ecosystem. They continued by saying that the HCL Group was almost ready to present a proposal to the Center 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.

 

“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.

 

The HCL Group must now establish a chip alliance in order to move up 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 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.