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L&T Semiconductor Technologies to Acquire 100% Stake in SiliConch For Up to INR 183 Crore L&T's subsidiary, L&T Semiconductor Technologies will buy 100 per cent stake in SiliConch for up to INR 183 crore, with structured payments

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Bengaluru-based SiliConch Systems Pvt. Ltd has been fully acquired by Larsen & Toubro (L&T), an engineering and construction company, bolstering its position in the semiconductor industry. L&T Semiconductor Technologies, a wholly-owned subsidiary of L&T, will purchase a 100 per cent stake in SiliConch for up to Rs 183 crore. However, as per VCcirlce, the deal has a structured payments system, consisting of an upfront payment of INR 133 crore and up to INR 50 crore payable over four years based on milestone achievement. The acquisition is expected to be completed by September 15.

L&T announced that the acquisition is in line with its semiconductor arm's overall growth strategy, and it expects to acquire intellectual property, engineering expertise, and design capabilities from SiliConch, further enhancing its presence in the industry.

The acquisition aligns with L&T's growth strategy in the semiconductor sector, enabling the company to gain intellectual property, engineering expertise, and design capabilities. SiliConch's revenue has grown consistently, reporting INR 27.68 crore in FY24, up from INR 19.97 crore the previous year and INR 11.02 crore in FY22, as per VCcircle.

SiliConch, established in April 2016, is a semiconductor design company that specialises in developing and designing Intellectual Property (IP) and Integrated Circuits (IC) for semiconductors. With a portfolio of 30 granted patents across various geographies, the company creates system-on-chip IP and generates revenue through non-recurring engineering fees and license agreements, as reported via ET. SiliConch's IPs are utilised by Original Equipment Manufacturers (OEMs) and fabless IC companies primarily in the US, who integrate them into power management systems for smartphones, automotive applications, and accessories.

Semiconductor market in India

With INR 1.3 lakh crore investments pouring into three approved plants in semiconductors including Tata Group's pioneering initiative, India is poised to create 10 lakh jobs by 2025-2026, driving economic prosperity. Similarly, Lam Research aims to utilise the Semiverse Solutions portfolio to deliver a virtual nanofabrication environment to help train up to 60,000 semiconductor engineers in India over the next 10 years. Public private partnership initiatives have consistently made a skilled talent pool available, supporting the talent requirement of electronics manufacturing companies. Read more

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