Amid a global semiconductor shortage, India is stepping up as a major player in this crucial market. One notable participant is HCL Tech, a well-known company considering entering the semiconductor space.
As of July 19, 2023, HCL Tech ranks as India’s 12th most valued company, with a market capitalization of Rs 2.2 trillion (US$ 29 billion). The company has consistently generated significant profits, benefiting its shareholders.
HCL Tech’s stock has delivered an impressive 562.4% return over the past decade, meaning an initial investment of Rs 100 in their shares would now be worth Rs 662.4.
Another highlight is HCL Tech’s consistency in declaring substantial dividends, with the upcoming 85th consecutive dividend declaration, spanning more than 80 consecutive quarters.
HCL Group is eyeing expansion in India’s thriving semiconductor sector and is planning to propose an assembly, testing, marking, and packaging (ATMP) facility for semiconductors, estimated at US$ 200-300 million.
This expansion coincides with Micron’s recent plans to set up an Outsourced Assembly and Test (OSAT) facility in Gujarat, where they will invest US$ 825 million.
Back in 2022, there were reports of HCL Group’s interest in acquiring a stake in ISMC Analog, a semiconductor wafer fab applicant.
India’s semiconductor sector has been experiencing significant growth, supported by the government’s ambitious Semicon India Program, aiming to build the world’s largest semiconductor ecosystem. The program has a financial outlay of Rs 760 billion.
Moreover, the government is launching the Design-led Manufacturing (DLM) Program to promote semiconductor design and manufacturing in India.
India’s push in the semiconductor market is well-timed, considering the global Sino-US trade tension and semiconductor supply chain issues.
HCL Group’s move into semiconductor manufacturing aligns with its existing relations with chipmakers like Intel. Their strong presence in the semiconductor space, offering various services globally, positions them well to contribute to India’s semiconductor ecosystem.
India stands to benefit from reduced dependence on imports, enhanced domestic production capabilities, and increased innovation in the semiconductor sector.
This strategic move by HCL Group showcases their commitment to India’s semiconductor growth story, solidifying their position in the global semiconductor landscape.