L&T Ventures into Semiconductor Sector with $300 Million Investment

Larsen & Toubro Ltd. (L&T) is making a major move into the semiconductor industry with the launch of a new fabless semiconductor company. The Indian conglomerate will invest over $300 million over the next three years, focusing on developing and marketing semiconductor designs. Although production will be outsourced, L&T aims to introduce 15 new chip products by the end of this year, with sales expected to begin by 2027.

This strategic investment positions L&T as a key player in India's growing semiconductor sector, reducing reliance on imports. L&T plans to target transformative industries such as automotive, industrial, and energy, by developing power chips and radio-frequency semiconductors.

The global semiconductor market is experiencing significant growth, driven by supply chain shifts due to US-China trade tensions. India is emerging as a key beneficiary, with various Indian firms, including L&T, Tata Group, and Adani Group, investing in chip production to strengthen the country's capabilities.

L&T Semiconductor Technologies, currently employing 250 staff members, plans to double its workforce by the end of 2024. The company is seeking government support for subsidies and incentives but will rely solely on internal funding.

This is a contract-based investment in the semiconductor sector, not a tender.

Nes by Rahul Yelligetti