Wipro Enterprises is exploring plans to enter the semiconductor sector, likely through chip assembly. The company is looking at the outsourced semiconductor assembly and test (OSAT) route, according to a report by the Economic Times. The discussions are still at an early and exploratory stage.
A person aware of the matter told ET that Wipro Enterprises is keen to diversify into this sector. The company is currently looking for a reliable technology partner, which will be an important factor before moving ahead.
Move Mirrors Rivals
Wipro Enterprises' move comes while several Indian conglomerates are investing in this fast-growing industry. Recently, HCL began work on a Rs 3,700 crore OSAT facility in Uttar Pradesh with Foxconn. Meanwhile, the Tata Group is building a Rs 27,000 crore OSAT plant in Assam. Similarly, the Murugappa Group's CG Semi has started the first unit of its Rs 7,600 crore OSAT project in Gujarat.
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"The company is first looking to scout for a credible technology partner as that will be a critical and deciding factor,” a person aware of the developments told ET.
Wipro Enterprises is part of the Wipro Group but operates separately from Wipro Ltd. It has two divisions: Wipro Consumer Care and Lighting and Wipro Infrastructure Engineering (WIN). WIN focuses on hydraulics, aerospace, automation, water treatment, among other things.
Current Status Of The Project
“The discussions can only take a more definite shape once the contours of the India Semiconductor Mission 2.0 come to light, and it is understood if there will be as much of a push for more semiconductor manufacturing units when there are already 10 projects underway,” another person told ET.
Also Read | India Semiconductor Mission 2.0 To Prioritise Indigenous Chip Design, Attracting Ecosystem Partners
In July last year, WIN launched Wipro Electronic Materials as a new division. In January, it got approval under the Electronics Components Manufacturing Scheme to invest Rs 500 crore in a copper clad laminate plant in Bengaluru. Analysts told ET that the move to approach diversification is a logical one as companies face heat due to AI related disruption.
"In the semiconductor space, Wipro offers deep engineering services—acting as an integral R&D arm for global firms - while its newer electronics manufacturing materials division signals a move to capture value in the physical supply chain,” Counterpoint Research senior analyst Parv Sharma told ET.
Sharing his perspective, Dhruv Shekhar of Koan Advisory noted that entering semiconductor packaging requires advanced technology, industry integration and credible global partners.
“Without such a partner, it becomes extremely difficult to achieve the yields, reliability standards and operational efficiencies required in semiconductor manufacturing...,” he explained.
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