The HCL Group, founded by Shiv Nadar and known for its global software credentials, is planning a significant entry into India’s burgeoning semiconductor ecosystem, according to sources familiar with the matter.

The group is reportedly preparing to submit a proposal to the Centre to establish an assembly, testing, marking, and packaging (ATMP) unit for semiconductors, with the project estimated to cost between $200 million-$300 million, Economic Times reports.

Joining the ranks of companies like Micron, which recently announced an $825-million investment for an Outsourced Semiconductor Assembly and Test (OSAT) plant in Gujarat, HCL Group’s foray is being driven at the group level, not directly by HCLTech, the $12.6-billion IT exports arm of the group.

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ATMP/OSAT units are a crucial link in the semiconductor manufacturing chain, performing essential tasks of testing and packing silicon chips. HCL Group’s entry into this sector is seen as strategic, given their existing global level service to chip makers like Intel as a software services firm.

The group is expected to apply for incentives under the $10-billion semiconductor incentive programme, where central and state subsidies can cover up to 75% of the capital expenditure incurred by companies setting up chip manufacturing units in the country.

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