HCLTech expands semiconductor capabilities with Samsung SAFE partnership

HCLTech has been selected as a Design Solution Partner (DSP) within the Samsung Advanced Foundry Ecosystem (SAFE) program, a collaboration set to drive innovation in semiconductor technology. By leveraging HCLTech’s expertise in engineering and research and development (R&D) services, this partnership aims to accelerate the development of next-generation silicon solutions, offering application-specific integrated circuit (ASIC) design services to semiconductor clients using Samsung’s advanced process technologies.

Samsung’s SAFE initiative fosters closer collaboration between the company’s foundry division, ecosystem partners, and semiconductor customers. The program provides certified design components, such as process design kits (PDKs), design methodologies (DMs), and intellectual properties (IPs), ensuring optimized system-on-chip (SoC) development. As a DSP, HCLTech will play a key role in enhancing chip design efficiency, providing technical expertise, and reducing time-to-market for new semiconductor solutions.

What Does the HCLTech-Samsung Partnership Mean for Semiconductor Development?

The semiconductor industry is undergoing a period of significant transformation, driven by advancements in artificial intelligence (AI), high-performance computing, and 5G applications. As demand for more powerful and energy-efficient chips increases, semiconductor companies are under pressure to refine design methodologies, optimize manufacturing processes, and reduce development cycles.

HCLTech’s inclusion in Samsung’s SAFE program positions the company as a critical partner in these efforts. The partnership enables semiconductor firms to access HCLTech’s ASIC design expertise, streamlining the development of customized silicon solutions. By working with Samsung Foundry, HCLTech gains access to cutting-edge fabrication technologies, ensuring that semiconductor customers can implement their designs on the most advanced process nodes available.

Additionally, Samsung will provide technical training to HCLTech employees, equipping them with the latest advancements in semiconductor design. Through the Multi-Project Wafer (MPW) program, the collaboration will facilitate efficient prototyping and production, allowing semiconductor clients to test their designs cost-effectively before mass production.

How Will HCLTech’s Semiconductor Capabilities Enhance Samsung’s SAFE Program?

HCLTech’s extensive experience in semiconductor engineering makes it a valuable addition to Samsung’s foundry ecosystem. The company has a strong track record in SoC design, verification, and validation, offering end-to-end semiconductor development services across multiple industries, including automotive, consumer electronics, and telecommunications.

By joining the SAFE program, HCLTech will contribute to accelerated time-to-market by leveraging its ASIC design expertise to help semiconductor firms shorten development cycles and bring innovative products to market faster. Its knowledge of SoC platforms and IP partnerships will help optimize design processes, reducing iterations and ensuring high-performance outcomes. Additionally, collaboration with Samsung gives HCLTech access to the latest process nodes, including FinFET and gate-all-around (GAA) transistors, allowing for the development of highly efficient chips.

Taejoong Song, Vice President and Head of the Technology Planning 2 Team at Samsung Electronics, emphasized that HCLTech’s global presence and technical capabilities play a crucial role in driving next-generation semiconductor solutions. He highlighted that the partnership reflects a shared commitment to advancing innovation and delivering cutting-edge silicon technology.

Sanjay Gupta, Corporate Vice President of North Asia at HCLTech, noted that the semiconductor industry is experiencing rapid growth, and the collaboration with Samsung Foundry is a testament to HCLTech’s dedication to developing state-of-the-art custom silicon solutions. By combining the strengths of both companies, the partnership is expected to enhance semiconductor advancements and meet evolving market demands.

How Is the Semiconductor Market Evolving, and What Are the Industry Implications?

The global semiconductor industry is currently navigating supply chain disruptions, increasing production costs, and rising demand for AI-driven chip architectures. With governments investing in domestic semiconductor manufacturing, major foundries such as Samsung are expanding their ecosystem partnerships to maintain a competitive edge.

Samsung Foundry has been positioning itself as a strong rival to Taiwan Semiconductor Manufacturing Company (TSMC) by investing heavily in advanced process technologies and diversifying its client base. The SAFE program plays a crucial role in strengthening these efforts by integrating design partners who can optimize chip development for a variety of applications.

HCLTech’s involvement in the SAFE program aligns with broader industry trends, where semiconductor companies are focusing on design automation, machine learning-driven optimization, and heterogeneous integration of chiplets. The partnership is expected to contribute to these emerging areas, allowing Samsung to offer comprehensive foundry services to customers requiring advanced, customized silicon solutions.

How Has HCLTech’s and Samsung’s Stock Performance Been Affected?

While the strategic partnership is a positive development for both companies, their stock performances reflect broader market challenges.

HCLTech Stock Performance

As of March 28, 2025, HCL Technologies Ltd. shares declined by 2.20%, closing at ₹1,590.95. The stock has underperformed the BSE SENSEX Index, which saw a modest drop of 0.25% to 77,414.92. HCLTech’s current valuation is approximately 20.89% below its 52-week high of ₹2,011.00, reached on January 13, 2025.

A key factor influencing HCLTech’s recent performance was a revenue shortfall reported in January 2025. The company posted a 5.1% increase in consolidated revenues to ₹298.9 billion, slightly below analyst expectations of ₹300.68 billion. Weakness in the software business segment contributed to a near 10% drop in stock value following the earnings release.

Samsung Electronics Stock Performance

Samsung Electronics has also faced stock price declines, trading at ₩60,200 as of March 28, 2025—a 22% drop over the past year. Competitive pressures in AI chips and smartphones, along with leadership uncertainties, have contributed to investor concerns.

The unexpected passing of Co-CEO Jong-Hee Han has added to the company’s challenges. Han played a critical role in overseeing the smartphone and consumer electronics divisions, and his sudden death has raised questions about the company’s leadership stability. Amid these concerns, Samsung must navigate shifting market dynamics while reinforcing its foundry business to sustain long-term growth.

Is Now the Right Time to Invest in HCLTech or Samsung Electronics?

Given the current market conditions, investors should approach both companies with a cautious outlook. HCLTech’s SAFE partnership positions it for long-term growth in the semiconductor sector. However, the company’s recent revenue shortfall and stock performance suggest that a ‘Hold’ position may be prudent until further clarity emerges on how the partnership translates into financial gains.

Samsung Electronics, despite strong foundry investments, is grappling with leadership changes and competitive challenges. Investors may consider a ‘Hold’ stance while monitoring how Samsung executes its strategic initiatives in semiconductors and AI chips.

What Does the Future Hold for the HCLTech-Samsung Partnership?

As semiconductor technology continues to advance, strategic collaborations like the HCLTech-Samsung alliance will play a critical role in shaping the future of the industry. By combining HCLTech’s ASIC design capabilities with Samsung’s cutting-edge foundry technologies, the partnership is well-positioned to drive innovation in AI, automotive, and high-performance computing applications.

For Samsung, strengthening its SAFE ecosystem is a strategic move to compete with TSMC and expand its market share in semiconductor manufacturing. For HCLTech, deeper integration into Samsung’s ecosystem opens up new opportunities in the semiconductor value chain, positioning the company as a key player in advanced chip design.

As the global semiconductor landscape evolves, this collaboration is expected to accelerate the adoption of new design methodologies, improve efficiency in chip development, and support the industry’s push toward more advanced and sustainable semiconductor solutions.