Over the next three years, L&T plans to design 15 semiconductor products, focusing on power chips, radio-frequency semiconductors, and mixed-signal integrated circuits, which are essential for a wide range of electronics. The company expects to begin sales by 2027 and expand its workforce of 250 chip designers to 500 by the end of 2024.
Larsen & Toubro Ltd. (L&T) is set to invest over USD 300 million to establish a fabless chip firm, marking a significant move as India aims to boost its domestic semiconductor industry. With growing global demand for semiconductors and tensions between China and the US, India is positioning itself as a new hub for electronics manufacturing. L&T’s investment aligns with the country’s efforts to reduce reliance on costly imports and take advantage of government subsidies aimed at strengthening local semiconductor production.
L&T is not seeking external funding, instead relying on its own resources to fuel this expansion. However, it is calling on the Indian government for subsidies specifically geared toward chip design to support large domestic companies. The company’s move comes as Prime Minister Narendra Modi’s administration rolls out a USD 10 billion program to attract semiconductor manufacturers. This initiative has already led to significant projects, including Tata Group’s plan to build the country’s first major chip factory and US-based Micron Technology’s USD 2.75 billion assembly facility in Gujarat.
Other Indian conglomerates, like Adani Group, are also stepping into the semiconductor space, aiming to build chip plants in collaboration with global partners. With the possibility of expanding the semiconductor fund, India is on the path to becoming a key player in the global chip industry.
