The HCL Group is shifting nearer to establishing an Outsourced Semiconductor Meeting and Check (OSAT) facility — additionally termed as a chip packaging unit — in Karnataka, a number of individuals conscious of the developments advised ET.
The power will likely be “small-to-medium sized” with an estimated funding of about USD 400 million, they added. The group — greatest identified for its USD 12.6 billion IT arm HCLTech — is in energetic talks with the state authorities, which has provided land each close to the worldwide airport in Bengaluru in addition to in Mysuru.
‘State Open to Extra Talks on Sops’
Officers within the know mentioned Mysuru could be splendid for fab manufacturing and for an OSAT in view of availability of water within the riparian district.
The state authorities has additionally labored out an incentive construction for the power, which can mark a return to expertise {hardware} for the HCL Group, thought-about one of many pioneers of IT manufacturing in India.
“The federal government is open to extra discussions on incentives additionally if the investor desires some tweaks,” mentioned one of many officers cited above.
If the discussions show profitable, HCL will be a part of the ranks of Micron, Tata Group, Murugappa Group and Kaynes Expertise, which have all not too long ago entered the chip OSAT and ATMP area.
“HCL Group receives and evaluates funding alternatives occasionally. We report these on the acceptable time based mostly on significant progress,” an HCL Group spokesperson mentioned in response to ET’s queries.
In July, ET had reported that the HCL Group was making ready a USD 300 million proposal to arrange a chip meeting unit. The group has been harbouring ambitions of moving into the semiconductor area for some time now.
Earlier, it was eyeing a stake in semiconductor wafer fab applicant ISMC Analog — a consortium of Mumbai-based Subsequent Orbit Ventures and Israeli tech agency Tower Semiconductor. HCL had signed a time period sheet to spend money on the consortium, which was among the many three candidates vying for subsidies below the Centre’s INR 76,000-crore Semicon India programme. Nonetheless, these talks ultimately fell by means of.
Neil Shah, vice chairman of Counterpoint Analysis, mentioned it was a very good technique for HCL Group to construct and increase its semiconductor ambitions, noting that its IT companies arm HCLTech had acquired Sankalp Semiconductor in 2019 and was well-versed with the chip ecosystem.
Sankalp is a semiconductor design service associate of high chip producers, design foundries and OEMs throughout the globe.
“From a method perspective, they’re into design and have a robust software program background by means of their subsidiaries so it’s a pure extension for them to get extra built-in with the semiconductor ecosystem by means of packaging as a result of they see an enormous alternative,” in response to Shah.
Establishing an OSAT unit in Karnataka is smart for the HCL Group because it already has engineers within the state the place Sankalp Semiconductors can be positioned. “It is smart to construct round the place their expertise pool exists,” he added.
Central Sops
Trade watchers are of the view that whereas the HCL group is eager to get the OSAT challenge off-the-ground, it might most probably proceed to search for a technical associate with a purpose to apply for traditional working procedures (SOPs) below the nation’s USD 10-billion semiconductor incentive programme.
Below this scheme, the central and state governments supply subsidies, protecting as a lot as 75% of the capital expenditure incurred by corporations establishing semiconductor services in India.
To make sure, the challenge is being led by HCL Group on the company stage and never HCLTech.
HCL enjoys a strong presence within the semiconductor area, the place it supplies lithography, etching, Ion implant, meeting, and packaging, together with testing companies globally.
As per the HCLTech web site, the corporate has partnerships with six out of the highest 10 semiconductor OEMs and over 2,000 extremely educated engineers within the semiconductor ecosystem (OEM, fab, and OSAT).
The central authorities has been steadfast with its mission to make India the vacation spot of selection for the semiconductor ecosystem. It had introduced the Semicon India Programme below the India Semiconductor Mission (ISM) in December 2021 to develop the semiconductors and show manufacturing ecosystem with an outlay of INR 76,000 crore.
