Wipro Enterprises eyes entry into semiconductor sector
Wipro Enterprises is considering entering semiconductor manufacturing, likely chip assembly, taking a cue from other large Indian conglomerates that are betting on the sunrise industry to power new avenues of growth.
"The talks are at an early and exploratory stage, but the company is keen to diversify into this sector," a person aware of the developments told ET. "The company is first looking to scout for a credible technology partner as that will be a critical and deciding factor."
It will look to enter the space via the outsourced semiconductor assembly and test (OSAT) route, he said, much like the HCL Group that laid the foundation stone for a Rs 3,700 crore OSAT facility in Uttar Pradesh in a joint venture with Foxconn.
The Tata Group is building a Rs 27,000 crore OSAT facility in Assam, while the Murugappa Group's CG Semi has inaugurated the first unit of a Rs 7,600 crore OSAT project in Gujarat’s Sanand along with Renesas and Stars Microelectronics.
"Several large Indian conglomerates are seriously assessing opportunities in the semiconductor space. Wipro is no different," another person said. "But 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."
Wipro Enterprises did not respond to queries till press time Monday.
Wipro Enterprises is part of the Wipro Group that includes listed IT services firm Wipro Ltd. It operates as a separate entity and encompasses two divisions: Wipro Consumer Care and Lighting and Wipro Infrastructure Engineering (WIN). WIN is a diversified engineering business specialising in hydraulics, automation solutions, aerospace, water treatment and additive manufacturing.
In July last year, WIN launched Wipro Electronic Materials as a new business division. In January, this division received approval from the Ministry of Electronics and Information Technology under the Electronics Components Manufacturing Scheme to invest Rs 500 crore to set up a copper clad laminate manufacturing facility in Bengaluru.
Diversification is a “logical response” to the rapid disruption of the services industry by artificial intelligence and India's semiconductor pivot offers both growth potential and policy support, Counterpoint Research senior analyst Parv Sharma said.
"Wipro's business model is bifurcated between services and infrastructure," Sharma told ET. "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."
He warned that while the copper clad laminate space represents a calculated, lower-risk entry, full-scale semiconductor manufacturing is a high-risk endeavour that demands significant capital and specialised process expertise.
Dhruv Shekhar, manager at Koan Advisory, also said entering the semiconductor packaging ecosystem would represent a significant step up for the company in terms of technological sophistication and industry integration.
"Securing a credible technology partner would likely be one of the most critical prerequisites for any semiconductor manufacturing ambition," he said. "Packaging and testing operations depend heavily on specialised process know-how, proprietary technologies and established relationships with semiconductor design firms and chip manufacturers."
Shekhar said most semiconductor projects in India have relied on partnerships with global players that bring both technical expertise and credibility with customers.
"Without such a partner, it becomes extremely difficult to achieve the yields, reliability standards and operational efficiencies required in semiconductor manufacturing. For a company entering the sector for the first time, a technology partnership would therefore not just accelerate capability building but also help establish trust with potential clients in the global semiconductor ecosystem," he said.
"The talks are at an early and exploratory stage, but the company is keen to diversify into this sector," a person aware of the developments told ET. "The company is first looking to scout for a credible technology partner as that will be a critical and deciding factor."
It will look to enter the space via the outsourced semiconductor assembly and test (OSAT) route, he said, much like the HCL Group that laid the foundation stone for a Rs 3,700 crore OSAT facility in Uttar Pradesh in a joint venture with Foxconn.
The Tata Group is building a Rs 27,000 crore OSAT facility in Assam, while the Murugappa Group's CG Semi has inaugurated the first unit of a Rs 7,600 crore OSAT project in Gujarat’s Sanand along with Renesas and Stars Microelectronics.
"Several large Indian conglomerates are seriously assessing opportunities in the semiconductor space. Wipro is no different," another person said. "But 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."
Wipro Enterprises did not respond to queries till press time Monday.
Wipro Enterprises is part of the Wipro Group that includes listed IT services firm Wipro Ltd. It operates as a separate entity and encompasses two divisions: Wipro Consumer Care and Lighting and Wipro Infrastructure Engineering (WIN). WIN is a diversified engineering business specialising in hydraulics, automation solutions, aerospace, water treatment and additive manufacturing.
In July last year, WIN launched Wipro Electronic Materials as a new business division. In January, this division received approval from the Ministry of Electronics and Information Technology under the Electronics Components Manufacturing Scheme to invest Rs 500 crore to set up a copper clad laminate manufacturing facility in Bengaluru.
Diversification is a “logical response” to the rapid disruption of the services industry by artificial intelligence and India's semiconductor pivot offers both growth potential and policy support, Counterpoint Research senior analyst Parv Sharma said.
"Wipro's business model is bifurcated between services and infrastructure," Sharma told ET. "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."
He warned that while the copper clad laminate space represents a calculated, lower-risk entry, full-scale semiconductor manufacturing is a high-risk endeavour that demands significant capital and specialised process expertise.
Dhruv Shekhar, manager at Koan Advisory, also said entering the semiconductor packaging ecosystem would represent a significant step up for the company in terms of technological sophistication and industry integration.
"Securing a credible technology partner would likely be one of the most critical prerequisites for any semiconductor manufacturing ambition," he said. "Packaging and testing operations depend heavily on specialised process know-how, proprietary technologies and established relationships with semiconductor design firms and chip manufacturers."
Shekhar said most semiconductor projects in India have relied on partnerships with global players that bring both technical expertise and credibility with customers.
"Without such a partner, it becomes extremely difficult to achieve the yields, reliability standards and operational efficiencies required in semiconductor manufacturing. For a company entering the sector for the first time, a technology partnership would therefore not just accelerate capability building but also help establish trust with potential clients in the global semiconductor ecosystem," he said.
Next Story