Published On:May 10 2024
Story Viewed 313 Times

"L&T Considers Acquisitions to Boost Semiconductor Operations"

In an effort to accelerate its recently launched semiconductor division, Larsen & Toubro (L&T) is exploring acquisitions of companies with established client bases in chip design, according to R Shankar Raman, the company's President, Whole-time Director, and Chief Financial Officer.

Speaking to businessline, Raman emphasized that L&T's acquisition strategy is not focused on acquiring new technology, but rather on expanding business opportunities. “We could look at acquisitions of entities that are already working on specific chip design projects. We are not looking for technology partners because that will constrain us to certain technology and certain markets,” he explained.

L&T, a Mumbai-headquartered conglomerate, has invested ₹850 crore in a new subsidiary, L&T Semiconductor Technologies, to further its semiconductor ambitions. The company plans to focus on chip design while steering clear of manufacturing, fabrication, and test packaging.

Raman detailed L&T's approach to building a team for the new semiconductor business, noting that the company intends to remain technology-agnostic and target a diverse range of industries, including energy, communications, and automotive sectors.

The company's efforts are not limited to domestic markets; L&T is also assembling business development and marketing teams in the USA, Europe, and Japan to broaden its reach in the global semiconductor landscape. “These are the larger markets that will order from us in addition to India,” Raman stated.

Additionally, L&T is monitoring government subsidies for potential funding support. The Indian government's interim budget allocated ₹6,903 crore for semiconductor initiatives, primarily focused on manufacturing. However, if subsidies are extended to chip design, L&T will consider applying for them. Raman noted that while the company has a robust balance sheet, subsidies could help scale operations faster and make products more competitive in the market.

India's semiconductor industry is gaining momentum with significant investments from major companies. The Tata Group has announced plans to establish a semiconductor fabrication unit, while US-based Macron has indicated investments in semiconductor testing. Meanwhile, multinational companies like Qualcomm continue to contribute to chip design in India. L&T's strategic approach to chip design and its interest in acquisitions signal the company's intention to play a significant role in India's burgeoning semiconductor ecosystem.


OUR OTHER PRODUCTS & SERVICES: Projects Database | Tenders Database | About Us | Contact Us | Terms of Use | Advertise with Us | Privacy Policy | Disclaimer | Feedback

This site is best viewed with a resolution of 1024x768 (or higher) and supports Microsoft Internet Explorer 4.0 (or higher)
Copyright © 2016-2024

Technology Partner - Pairscript Software