L&T plans to invest $12 billion in India to set up three chip fabrication units, transitioning from SoC design to manufacturing chips in its own facilities.
L&T Semiconductor Technologies (LTSCT) has announced plans to invest $10-12 billion in building three semiconductor fabs in India over the next five to 10 years.
According to LTSCT’s CEO, Sandeep Kumar, the transition from a system-on-chip (SoC) design company to a full-fledged chip manufacturer will hinge on reaching an annual revenue milestone of $1 billion, expected within the next two to three years. To support this shift, the company aims to produce and sell 500 million chips annually.
The investment will be allocated across three types of fabs: approximately $10 billion for silicon chips, over $1 billion for silicon carbide chips, and around $500 million for gallium nitride chips. Kumar emphasized that the final investment decisions will depend on financial returns and government incentives available at the time.
In addition to its expansion, LTSCT is targeting contracts worth $150 million with six automobile companies by the end of September.
These agreements will include orders from three major Indian automotive firms and three large European clients, expected by October.
The company plans to focus on the automotive, energy, and industrial sectors, offering products such as mixed-signal solutions, innovative power components, intelligent sensing, smart RF solutions, and SoCs.
