Under the agreement, it has acquired right to use and sublicense IBM's 'PowerPC 405' and 'PowerPC 440' embedded microprocessor cores and certain associated peripheral cores, it informed the Bombay Stock Exchange.
The objective of the design centre is to expand 'Power Architecture' designs in additional applications including networking, wireless and consumer devices.
The company has been providing system design solutions including VLSI and hardware designs in vertical Industries such as telecom as well as storage domains.
"The HCL team and I are very pleased to be selected as IBM's first partner to set up a design centre outside IBM. This initiative shall receive my team's highest attention to ensure its success," said Shiv Nadar, founder, HCL Technologies.