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L&T to invest over $300 million to establish a fabless semiconductor company
Industry News- Sep 12,24
Semiconductors have become crucial globally, particularly amid the US-China trade tensions, prompting electronics manufacturers to seek alternatives beyond China and Taiwan.
Larsen & Toubro Ltd (L&T) is set to invest over $300 million over the next three years to establish a fabless semiconductor company. This move underscores India's expanding efforts to bolster local semiconductor capabilities and reduce reliance on costly imports. The new chipmaker will focus on designing 15 semiconductor products by the end of this year and aims to commence sales by 2027.
Sandeep Kumar, Head, L&T Semiconductor Technologies, revealed that the company will design products including power chips, radio-frequency semiconductors, and mixed-signal integrated circuits. Unlike major global players like Nvidia and AMD, L&T's focus will be on sectors such as automotive, industrial, and energy, which are undergoing significant transformations.
Semiconductors have become crucial globally, particularly amid the US-China trade tensions, prompting electronics manufacturers to seek alternatives beyond China and Taiwan. This geopolitical shift is benefiting India, as it emerges as a viable option for semiconductor production and design.
L&T’s investment, while significant, is modest compared to the expenditures of leading fabless chipmakers. The company currently employs around 250 chip designers and plans to double this number by the end of 2024. L&T is advocating for government subsidies and incentives for chip design but will not seek external funding outside its group.
India's semiconductor ambitions are further supported by a $10 billion government initiative designed to attract chipmakers and suppliers. This program has already led to significant investments from Tata Group, Micron Technology Inc., and Adani Group, with the potential for further expansion of the fund.
Prime Minister Narendra Modi’s administration continues to support the growth of the semiconductor industry, reinforcing India’s role as a key player in the global supply chain.
(TOI)
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