L&T Semiconductor Technologies, an Indian startup set up less than a year ago, expects to begin developing chips for six automobile companies and eventually venture into the chipmaking business.
Sandee Kumar, CEO of L&T Semiconductor Technologies, told Reuters in an interview that the company is expected to sign three Indian automobile companies within two weeks and three European companies by the end of September, with the total value of the contracts amounting to US$150 million per year.
Initially operating as an IC design house, the company plans to construct a fab once it reaches U$1 billion in sales. Kumar anticipates achieving U$1 billion in annual revenue within seven years. He noted that the company will need a sufficient product pipeline and a solid customer base to justify the investment in the fab.
The announcement of the manufacturing plan marks the company's second major move into the chipmaking business within a week. In an interview with Mint, Kumar revealed that L&T Semiconductor intends to build three wafer fabs in India over the next five to ten years, with potential investments totaling US$10-12 billion. The company aims to become India's first global semiconductor player operating from within the country.
Kumar told Mint that the return on investment and the availability of financial incentives from the Indian government will be crucial factors in determining the investments.
Kumar outlined that investments in silicon could exceed US$10 billion, with silicon carbide around US$1 billion and gallium nitride potentially costing about US$500 million. However, he emphasized that a strong order book will be essential to operating the fab at full capacity and producing chips at globally competitive prices.
L&T Semiconductor Technologies, formed by Indian infrastructure giant L&T in November 2023, designs and develops MEMS sensors, power ICs, analog ICs, and mixed-signal & RF ICs for automotive, industrial, energy, and telecommunication sectors. The company has R&D centers in Bangalore, Delhi, and Chennai and has product engineering and sales divisions in Austin, Munich, and Tokyo.
In July, the company announced it had signed a Master Collaboration Agreement (MCA) with Aditya Infotech to develop and supply SoC and other system solutions for CCTV Cameras.
