Connect with us

Company News

L&T ventures into semiconductor chip design

Larsen & Toubro (L&T) is building a team for its semiconductor chip design business, as it looks to foray into fabless semiconductor chip design and product ownership.

L&T set up a wholly-owned subsidiary L&T Semiconductor Technologies (LTST) in November 2023.

JD Patil, Advisor to chairman and managing director, L&T, said LTST is building a 400-500-strong global team purely focused on chip design and scouting for talent from the US, Europe, Japan, ASEAN and India.

Patil said the business can’t be solely for the domestic market. “Chip is not a business you can do domestically, so we are building an international team,” he said.

Patil said LTST isn’t looking to be a mass manufacturer of processor or memory chips. Instead, it will play in the highly-engineered category. “This is not a space where everybody can compete. LTST will focus on customised chips,” he said.

It will be a game of ASICs (Application Specific Integrated Circuit) and the firm will offer complete solutions. “A chip will be able to do what a full rack can achieve,” he said.

While the chip manufacturing will be outsourced, the design will be done in-house, Patil said.

The chip design would look at the automotive and industrial chip segments.

“The challenge for chip designers working on chips specifically designed for India, especially the defence sector, is to design chips for equipment that can operate in the 55-degree to minus 40-degree range. This combination isn’t available anywhere in the world. The business is being incubated and will start showing up in the market in another three years,” Patil said.

He was speaking on the sidelines of the Maharashtra MSME Defence Expo held in Pune, organised by the Maharashtra state government to encourage MSME participation in defence production.

The defence expo showcased defence equipment from L&T, DRDO, Tata Advanced Systems, Solar Industries, Bharat Forge and Nibe and included small arms weapon systems to diverse military vehicles and advanced air-defense and missile systems.

Indian companies such as Tata, Vedanta and HCL have announced proposed investments in semiconductor chip manufacturing in India. L&T has also joined the bandwagon, Patil added. Financial Express

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2024 Communications Today

error: Content is protected !!