Since nothing is moving on the Intel-Tower front, HCL is planning to go solo and apply for an ATMP unit
As per a media report, the Shiv Nadar founded HCL Group is now willing to foray into India’s growing semiconductor industry. The July 19 report on the Economic Times highlighted that this billionaire business group is speculated to submit a proposal to MeitY as soon as possible so that it can set-up its own assembly, testing, marking and packaging (ATMP) facility.
According to the sources, the investment for beginning the facility will be around $200-300 million and the firm’s senior officials added that HCL group is spreading the semiconductor venture and not HCLTech, which is the group’s $12.6 billion IT exports hub. Reports also mentioned that the company is intending to apply for standard operating procedures (SOPs) under the semiconductor PLI scheme of Rs 76,000 Crore unleashed in December 2021.
As per the PLI scheme, both the state and the union government offer subsidies, which is as much as 75 percent of the capital expenditure incurred by companies for setting up semiconductor units in India. The current development in this industry is US based Micron’s investment in Gujarat’ Sanand region for setting-up an Outsourced Assembly and Test (OSAT) unit.
According to the industry report, the investment for setting-up this facility is worth $825 million, while the cumulative investment in this venture is around $2.75 billion. This OSAT venture of Micron in association with the state and the union government is very likely to spark and boost India’s semiconductor manufacturing ecosystem, claim experts.
Speaking of the investment in the semiconductor industry, HCL’s officials told ET, “HCL Group receives and evaluates investment opportunities from time to time. We report this at the appropriate time based on meaningful progress. Since nothing is moving on the Intel-Tower front, HCL is planning to go solo and apply for an ATMP unit.”