Wipro Enterprises plans to enter the semiconductor industry

Wipro Enterprises is exploring plans to enter the semiconductor manufacturing sector, particularly chip assembly and testing, as part of its strategy to diversify into emerging industries. According to sources familiar with the matter, discussions are still at an early stage and the company is currently looking for a reliable technology partner before moving ahead.

The company is considering entering the market through the outsourced semiconductor assembly and test (OSAT) model. This approach focuses on packaging and testing semiconductor chips rather than manufacturing them from scratch. Several Indian conglomerates have recently adopted this route while expanding into the semiconductor ecosystem.

For example, the HCL Group has partnered with Foxconn to build a ₹3,700 crore OSAT facility in Uttar Pradesh. Meanwhile, the Tata Group is developing a ₹27,000 crore OSAT facility in Assam. The Murugappa Group has also entered the sector through its semiconductor arm CG Semi, launching a ₹7,600 crore OSAT project in Sanand, Gujarat, in partnership with Renesas Electronics and Stars Microelectronics.

Industry experts say several large Indian business groups are evaluating opportunities in the semiconductor sector, encouraged by the government’s push to build a domestic chip manufacturing ecosystem under initiatives like the India Semiconductor Mission. However, companies are also waiting for more clarity around the upcoming policy framework before finalising investment decisions.

Wipro Enterprises is part of the broader Wipro Group, which also includes the listed IT services company Wipro Ltd. The enterprise arm operates separately and consists of two major divisions: Wipro Consumer Care and Lighting, and Wipro Infrastructure Engineering (WIN). WIN focuses on engineering solutions including hydraulics, automation systems, aerospace, water treatment, and additive manufacturing.

In July last year, WIN launched a new business division called Wipro Electronic Materials. Earlier this year, the division received approval from India’s Ministry of Electronics and Information Technology to invest ₹500 crore in setting up a copper clad laminate manufacturing facility in Bengaluru under the Electronics Components Manufacturing Scheme.

Analysts say diversification into semiconductors is a logical move as artificial intelligence continues to disrupt traditional IT services. Parv Sharma, senior analyst at Counterpoint Research, said Wipro already has strong engineering capabilities that support global semiconductor firms through research and development services. The new electronic materials division also shows the company’s intention to participate in the physical semiconductor supply chain.

However, experts warn that full-scale semiconductor manufacturing is highly capital intensive and technically complex. Dhruv Shekhar from Koan Advisory noted that entering semiconductor packaging and testing would require advanced technological capabilities and strong industry partnerships.

He added that most semiconductor projects in India rely on partnerships with global technology players who bring expertise, proprietary technologies, and established relationships with chip designers and manufacturers. Without such collaborations, it becomes difficult to achieve the quality, reliability, and efficiency standards required in semiconductor production.

Experts believe that if Wipro Enterprises successfully secures a global technology partner, it could strengthen its position in the growing semiconductor ecosystem and open up a new growth avenue for the company.