L&T Semiconductor Tech, a subsidiary of Indian conglomerate Larsen & Toubro, plans to focus on semiconductor IC design in its initial phase, followed by the development of a Gallium Nitride (GaN)/ Silicon Carbide (SiC) fabrication facility in the second phase.
According to industry sources, in phase one, L&T Semiconductors will focus on the design & development of niche ICs for targeted markets and outsource the semiconductors manufacturing and packaging like other fabless companies. In phase two, once there are enough chip sales, and ready for effective utilization of fabs for production, they may set up their own fabs, focusing on high-power devices like gallium nitride and silicon carbide.
The company aims to be selective and partner with global players for manufacturing and packaging. They intend to cover segments such as automotive, industrial, networking, and energy, utilizing both digital and analog technologies.
L&T Semiconductor has already begun conversations with fabs like TSMC and GlobalFoundries, sources added. On the customer side, the company is seeing active interest from various players in India and overseas.
This initiative could bolster India's ambitions to become a major player in the global semiconductor Design & Manufacturing sector. Earlier this year, the country approved three significant proposals in this domain, including wafer fabrication and OSAT plants.
Recent acquisition
L&T Semiconductor recently signed an agreement to acquire SiliConch Systems for an initial payment of Rs 133 crore. According to an exchange filing by the company, the deal also includes a deferred payment of Rs 50 crore to be paid over four years.
SiliConch Systems, a fabless semiconductor design company, specializes in developing System-on-Chip IP. The company employs 61 people and holds 30 patents across various regions.
The acquisition could enhance the Group's presence in the fabless semiconductor business by adding IP, engineering skillsets, and design expertise, aligning with L&T Semiconductor's overall growth strategy.
