L&T Semiconductor Technologies aims to roll out its products by 2024, targeting the automotive, industrial, and energy sectors.
Speaking to DIGITIMES Asia, CEO Sandeep Kumar noted that these industries are increasingly moving towards software-defined systems, adding that L&T Semicon's chips are specifically designed to cater to these advancing requirements.
"In the automotive sector, we are developing high-end silicon chips to support the growing demand for software-defined vehicles and electric mobility," Kumar said. "As vehicles become smarter, requiring more real-time processing and electric power management, our chips will enable advanced functionalities in areas like autonomous driving, battery management, and vehicle-to-everything (V2X) communication."
For the industrial sector, the company focuses on chips that enable automation and smart manufacturing. Aligned with the Industry 4.0 movement, these chips are designed to integrate IoT, AI, and machine learning into manufacturing processes, enhancing efficiency, productivity, and real-time decision-making.
"In the energy sector, we are targeting applications like smart grids and renewable energy integration," Kumar added. "As decentralized energy systems continue to grow and energy grids become more resilient and efficient, our chips will enable real-time data flows, optimized power management, and energy storage solutions."
The company is also developing silicon carbide (SiC) and gallium nitride (GaN) chips, essential for high-efficiency power management. These chips are designed for high-demand applications that require efficient power conversion, including electric vehicles, power infrastructure, and renewable energy systems.
Manufacturing plans
As L&T Semicon contemplates a shift from a fabless model to establishing local semiconductor manufacturing units, several factors will guide its decision.
The primary consideration will be market demand for its semiconductor products, particularly in sectors where it is already focusing on high-end silicon chips and next-generation power management solutions such as SiC and GaN. Kumar added that other factors, such as the availability of skilled talent, access to infrastructure, and the expanding semiconductor ecosystem in India—bolstered by government incentives—will also influence the company's strategy.
"Currently, we are in a fabless space and require the government's support in a more nuanced manner with design-focused incentives," Kumar said. "While building fabs involves tangible infrastructure, product development requires a deeper technical understanding and the ability to evaluate long-term innovation potential. We need continued government backing that enables research, innovation, and the creation of a skilled talent pool to drive semiconductor design forward."
The company hopes that by the time it reaches the production phase, government support will have strengthened further. Kumar emphasized that initiatives such as the Modified Programme for Semiconductors are crucial to advancing India's semiconductor sector.
The program offers fiscal support for establishing semiconductor fabs across various technology nodes, along with backing for assembly, testing, marking, and packaging (ATMP/OSAT) facilities, paving the way for potential end-to-end production within India.
Balancing advancement and legacy needs
Balancing its focus on cutting-edge technologies such as AI and mobility with India's broader goal of self-reliance in semiconductor manufacturing is essential, Kumar stated. He emphasized that collaboration is key to this approach, enabling the integration of advanced semiconductor design technologies, particularly in AI, edge computing, and mobility.
These technologies not only reshape industries and align with global trends but also create opportunities to cultivate local talent and drive domestic innovation, furthering India's self-reliance goals.
"As we explore cutting-edge innovations, we remain dedicated to contributing to India's ambitions of becoming a semiconductor hub," Kumar said. "We are investing heavily in R&D to develop technologies that comply with local regulations while meeting global standards. Our goal is to build market-competitive solutions that put India on the map as a key player in the global semiconductor landscape, particularly in sectors like automotive, industrial, and energy."
Challenges ahead
The company recently announced plans to invest over $300 million to establish a fabless chip company, intending to reach full production capacity within two years. Kumar acknowledged that this presents a unique set of challenges.
"The first major hurdle is product development," Kumar said. "We need to build market-ready products swiftly and at scale, and that's where our partnerships, like the one with IBM, play a key role. Such collaborations with our strategic partners will accelerate the development of processors and other chips, which otherwise take years if developed from scratch. This enables us to bring products to market faster, meeting customer needs while staying ahead of the competition."
The company aims to scale to full production capacity within two years, adopting a sequential approach by first proving market success and generating revenue. Once key milestones are achieved, the company will explore building a fabrication facility, allowing for measured scaling and reduced risk.
Kumar noted that L&T Semicon is investing heavily in R&D for software-defined systems, a focus that enhances product performance and strengthens its position in India's semiconductor industry, enabling agile responses to challenges and market opportunities.
