L&T acquires Indian IC design startup

Larsen & Toubro bought an IC design startup to enhance its IP and engineering capabilities in the semiconductor sector in a series of investments in and acquisitions of India-based chip startups.

Larsen & Toubro's unit, L&T Semiconductor Technologies, has agreed to acquire SiliConch Systems Pvt. for INR1.33 billion (US$15.9 million) in cash upfront, with an additional INR500 million in deferred payments over four years, subject to certain targets and conditions, according to an exchange filing. The transaction is expected to be completed by September 15. This acquisition will enhance Larsen & Toubro's semiconductor business by adding intellectual property, engineering skills, and design expertise, the company stated.

Bangalore-based IC design house SiliConch Systems, established in April 2016, specializes in developing and designing semiconductor intellectual property (IP) and integrated circuits (ICs). The startup employs a team of 61 professionals dedicated to developing System-on-Chip (SoC) IP and holds 30 granted patents globally. SiliConch's IP solutions are primarily utilized by OEMs and fabless IC companies, particularly in the US, to enhance power management systems for smartphones, PCs, automotive applications, IoT devices, and accessories.

The Economic Times reported that amidst the burgeoning semiconductor market, companies are increasingly pursuing acquisitions to expand their presence in the sector. Recently, Accenture acquired Bengaluru-based IC design services firm Excelmax Technologies to strengthen its silicon design and engineering capabilities. Infosys, another India-based software services provider, acquired Bengaluru-based InSemi. Meanwhile, India-based semiconductor company Tessolve established an IC design startup iVP Semi, which raised US$5 million in pre-Series A funding.

Source: L&T, July 2024