HCL Tech focus to double semiconductor biz in 4 years

CIOTechOutlook Team | Monday, 06 March 2023, 02:57 IST

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In response to skills it would create around electronic chip plants to be set by its group company, IT provider HCL Technologies aims to quadruple semiconductor services business in 3–4 years, a senior company official said here. HCL Group is one of the businesses that has submitted an application to establish an electronic chip manufacturing facility under the "Scheme for Compound Semiconductors," and HCL Technologies will help HCL Corporate produce chips from beginning to end.
 
"One of the focus sectors for HCL Technologies, especially in engineering services is semi chip. Our plan is to double our business. There is an internal plan to do it in a period of three to four years. I say only three to four because it is ongoing and we see demand enough to do that," HCL Technologies executive vice president and BU head Ameer Saithu added.
 
He claimed that after the government approves HCL Group's application, construction on its semiconductor wafer fab can begin in around 18 to 24 months.
 
"We are ready with funds. Just to be clear, again, it is happening from HCL Corporate. From my perspective, which is HCL Tech, we are interested in developing capabilities in that space and we see that as a very big opportunity," he said.
 
A chip wafer fabrication facility for 65 nanometre nodes, which are employed in the automotive, consumer goods, and low-cost device segments, is being planned by HCL Group.
 
In the fabrication of electronic chips, HCL Technologies presently collaborates with industry leaders like Intel, NXP, Applied Materials, and Taiwan Semiconductor Manufacturing Company (TSMC).
 
According to Saithu, HCL Technologies' semiconductor manufacturing facility will assist it to complete its end-to-end offering in electronic manufacture.
 
"Right now in some of these activities, we are using partners. Whether it is a Global Foundry or TSMC, we are a partner. With this investment, we expect to be able to provide end-to-end service with HCL corporate as a partner. In a sense, you can say it is moving up the value chain but it is more and more of completing the offerings. So that fabless semiconductor company, who do not want to be dealing with multiple partners, they can come to us," Saithu said.
 
According to him, there is an increased demand for HCL Tech semiconductor services globally, and the business has begun developing capabilities in Brazil, Vietnam, Israel, the Netherlands, and Japan while also adding staff to its Bangalore location.
 
"We are trying to increase the size of the pool available, rather than the same people going from one place to another. We have also established a very large scale training programme with multiple customers involved in different skill sets within this industry," Saithu said.