L&T considers acquisitions in the semiconductor industry

The business based in Mumbai has committed ₹850 crore to establish L&T Semiconductor Technologies as a completely owned subsidiary.To expand its recently established semiconductor business, Larsen & Toubro (L&T) intends to search for acquisition companies that already have a clientele of chip designers.According to businessline, R Shankar Raman, who was promoted to the position of President, Whole-time Director, and Chief Financial Officer at Larsen & Toubro, these acquisitions are intended to generate business rather than technology. "We might consider purchasing companies that are currently engaged in particular chip design projects. Since doing so would limit us to a specific set of technologies and markets, we are not searching for technology partners, Raman stated.The firm based in Mumbai has committed ₹850 crore to establish L&T Semiconductor Technologies, a wholly owned subsidiary.According to Raman, L&T is now putting up a team for the new venture. "We are into chip design, but we won't go into manufacturing, fab foundries, or test packaging. We wish to stay impartial on technology. We wish to serve the automotive, energy, communication, and broader industrial applications," stated Raman.

In addition, the business is actively assembling its staff in foreign markets in preparation for the expansion of its semiconductor division."We are trying to find groups that can start working with product and original equipment makers and develop the chips. In the USA, Europe, and Japan, the team responsible for business development and marketing is being established. In addition to India, these are the bigger markets that will place orders with us," he stated.government assistance Although the government has up ₹6,903 crore for semiconductors in its interim budget, Larsen & Toubro (L&T) would want a subsidy if it is expanded to include designing. "We will apply for the government subsidy if it is expanded to chip design. The overall economics makes the product more competitive, and we could scale up faster utilizing the subsidies, he continued, even though we have a healthy balance sheet and in some sense do not need to rely on them. There are three components to the semiconductor ecosystem. creating, producing, and evaluating. India's aspirations in the semiconductor industry are gaining momentum as a number of corporations announce significant investments. The location of a semiconductor fabrication unit has been announced by the Tata group. Macron, a US-based company, has also disclosed funding for semiconductor testing. By the time