Larsen & Toubro Ltd. plans to invest over $300 million to establish a fabless semiconductor company, joining other Indian conglomerates in promoting the country's semiconductor industry. The investment will be spread over three years, with a goal to design 15 semiconductor products by the end of 2023 and initiate sales in 2027, according to Sandeep Kumar, head of L&T Semiconductor Technologies. This initiative comes as India seeks to boost local semiconductor manufacturing and reduce costly imports, capitalizing on government subsidies.
As tensions between the U.S. and China create an impetus for electronics manufacturers to diversify their supply chains, India is positioned to benefit from this shift. L&T's investment, while modest compared to industry giants like Nvidia and AMD, targets power chips, radio-frequency semiconductors, and mixed-signal integrated circuits, focusing on sectors like automotive, industrial, and energy, which are undergoing significant transformations.
Currently employing about 250 people, primarily chip designers, L&T Semiconductor Technologies aims to double its workforce by the end of 2024. The company has urged the government to provide support through design subsidies but will not seek external funding.
Prime Minister Narendra Modi's administration has created a $10 billion program to attract chipmakers, resulting in initiatives from major companies like Tata Group and Micron Technology Inc., which are establishing significant manufacturing facilities in India. Additionally, the head of a state agency recently indicated that India is open to expanding its semiconductor fund, further encouraging investment in this critical sector.
