L&T Semiconductor Technologies Aims to Sign First Clients by September, Plans for $12 Billion Investment in Indian Fabs

• Hrishikesh
• August 14, 2024
• India, News, Semiconductor Industry
• automotive sector, chip manufacturing, energy sector, fabless chip design, gallium nitride, Global Foundries, global semiconductor player, India semiconductor, industrial sector, IoT news, L&T, L&T Semiconductor, LTSCT, Sandeep Kumar, semiconductor fabs, Semiconductor Industry, semiconductor investments, Silicon Carbide, silicon chips, technology-driven business, TSMC, VIS Technologies
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August 14, 2024 | IoTAdda News Desk

L&T Semiconductor Technologies (LTSCT), a division of the engineering and construction conglomerate Larsen & Toubro, is making bold strides to establish itself as a global semiconductor player. The company plans to sign its first clients by September 2024 and is eyeing the construction of three semiconductor fabrication plants (fabs) in India, with potential investments ranging from $10 billion to $12 billion over the next five to ten years.

Transition to a Global Semiconductor Leader

LTSCT, which began as a fabless chip design company, is now setting its sights on building its own semiconductor fabs. This transition is contingent on the company generating $1 billion in annual revenue within the next two to three years. The company aims to produce and sell 500 million chips to reach this revenue milestone, according to CEO Sandeep Kumar.

“The vision is to become the first global company in semiconductors operating from India, headquartered here, with a footprint across the US, Europe, Japan, and India,” Kumar stated. He emphasized that while the company’s center of gravity for development and manufacturing will be in India, it plans to establish a significant global presence.

Diverse Technology Portfolio and Strategic Partnerships

LTSCT is working on a range of technologies, including high-end silicon chips, silicon carbide, and gallium nitride chips. Each technology will require different fabs with varying levels of investment. For example, silicon fabs are expected to require over $10 billion in investment, while silicon carbide and gallium nitride fabs may require around $1 billion and $500 million, respectively.

The company is currently in discussions with various partners to finalize its plans for these fabs. “On silicon, all the partner details are in place. On gallium nitride, it is halfway there, and silicon carbide I have 15 different discussions going on,” Kumar noted. These discussions are expected to conclude within the next three months.

First Client Deals and Revenue Generation

LTSCT is set to secure six deals in the automotive sector worth $150 million in the coming months. These deals include orders from three major Indian players and three large European clients, with revenues expected to start flowing in by October 2024. The company is targeting the automotive, energy, and industrial sectors with a focus on mixed-signal, smart power, smart analogue, smart sensing, and smart RF solutions and SoCs.

LTSCT is already collaborating with Taiwan’s TSMC for in-house designed silicon chips ranging from 40nm to 7nm. It is also working with Global Foundries in the US for mixed-signal digital processes on silica, as well as with Japanese partners for silicon carbide chips and VIS Technologies in Taiwan for gallium nitride-based radio frequency and power devices.

Expansion and Workforce Growth

The company, which was established in 2023 with an initial capital outlay of ₹830 crore, has seen its employee count rise to 200 in the past six months. This number is expected to reach 500 by February 2025, with employees located across India, the US, Europe, and Japan.

A New Direction for L&T

L&T’s pivot to becoming more technology-driven under the leadership of Chairman and Managing Director S.N. Subrahmanyan is evident in its ventures into data centers, electrolyser manufacturing, and battery energy storage businesses. The semiconductor division, though new and competing in a market dominated by giants like Qualcomm and NXP, is backed by L&T’s long-standing industry reputation and the robust sales pipeline generated through co-development with clients.

With its ambitious plans and strategic vision, L&T Semiconductor Technologies is positioning itself to become a key player in the global semiconductor industry, with India at the core of its operations.