HCL Tech clarifies report on ISMC Analog stake deal for semiconductor foray not related to it

HCL Tech, in a BSE filing clarified that the report on stake buy in ISMC Analog for semiconductor foray is not related to the company.

The report pertains to HCL Group, not HCL Tech, the clarification said.

The clarification came from the company following November 8 reports that Reliance Industries Limited (RIL) and HCL Group were independently “evaluating” deals to pick up 30 percent equity stake each in semiconductor wafer fab applicant ISMC Analog.

It is likely that both RIL and HCL will invest through subsidiaries with an estimated total investment from both parties likely to exceed Rs 4,000 crore ($500-600 million). The terms for both proposed agreements have been signed recently, the report added.

India had last December approved a $10-billion incentive plan to attract semiconductor and display manufacturers deepening the push to establish the country as a global electronics production hub. Under the Semicon scheme, the Centre announced to make upfront investments – 50 percent tax support under recent amendments – to support semiconductor wafer factory proposals submitted by various corporate entities.