L&T Semiconductor Buys Bengaluru Startup for Rs 183 Crore

Larsen & Toubro (L&T) has signed an agreement to acquire Bengaluru-based SiliConch Systems for Rs 183 crore. This strategic move involves L&T Semiconductor Technologies, a wholly-owned subsidiary, which entered into a share purchase agreement on July 8, 2024, to acquire a 100% stake in SiliConch Systems. The acquisition is expected to be completed by September.

This acquisition aims to bolster L&T’s presence in the fabless semiconductor industry, adding critical engineering skills and design expertise. The Rs 183 crore deal includes an upfront payment of Rs 133 crore upon closing, with an additional Rs 50 crore deferred over four years, contingent on achieving specific targets and conditions.

SiliConch Systems specializes in the development and design of semiconductor Intellectual Property (IP) and Integrated Circuits (IC). Their primary customers are original equipment manufacturers (OEMs) and fabless IC companies, mainly in the US, focusing on power management systems for smartphones and automotive sectors.

The semiconductor ecosystem, comprising design, manufacturing, and testing, will benefit from this acquisition as L&T enhances its capabilities. This move aligns with the growing demand for advanced semiconductor solutions in various industries.

In related news, Assam CM announces a new urban centre in Guwahati, and iVP Semiconductor targets USD 70 million in revenue with smart grid chips.

News by Rahul Yelligetti