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HCL Technologies to Double its Semiconductor Services Business

CIO Insider Team | Monday, 6 March, 2023
Separator

HCL Technologies, an IT company, plans to double its semiconductor services business in three to four years as a result of capabilities it will build around electronic chip factories that will be established by its parent company.

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.

In the words of HCL Technologies executive vice president and BU head Ameer Saithu, “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 enough demand to do that”.

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.

According to Saithu, "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 program with multiple customers involved in different skill sets within this industry”.

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.

"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.

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.

Saithu says that, “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”.

According to Saithu, "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 program with multiple customers involved in different skill sets within this industry”.

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