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We Aspire To Lead the Shift Towards Software-defined Systems: L&T Semiconductor The approach is customer-first, identifying the needs of large, strategic customers in sectors like automotive, industrial, and energy, and then building tailored solutions to address those needs, says Sandeep Kumar, CEO, L&T Semiconductor Technologies

By Shrabona Ghosh

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Sandeep Kumar, CEO, L&T Semiconductor Technologies

Almost a year back, life came full circle for Sandeep Kumar, when he got an opportunity to set up a semiconductor company in India. The tryst began in the 1980s when he started working with semiconductor giant Texas Instruments (TI). In 2023, L&T Semiconductor Technologies (LTSCT), a fully owned subsidiary of L&T, came to life and Kumar was appointed the CEO. It is set to debut in the semiconductor industry with an investment of $300 million over the next three years to establish a chip designing company.

At a time when Indian semiconductor companies were moving into manufacturing and assembly, Kumar took a different route: He ventured into chip design. "This aligns perfectly with the significant transformation happening in key industries such as automotive, industrial, and energy. These sectors are transitioning from traditional hardware-driven systems to more advanced, software-defined systems—giving rise to innovations. This shift creates a tremendous opportunity to develop cutting-edge semiconductor solutions that cater to the future needs of these industries. I see this as the right time and the perfect opportunity to build a truly Indian semiconductor company that contributes to the country's technological and industrial future," said Sandeep Kumar.

Making India a hub for Innovation

While the current market largely serves legacy systems, there is a growing demand for new technologies which can address this change, allowing L&Tsemiconductor to enter and potentially disrupt the market. Moreover, the three sectors hold immense strategic value for India, with high growth potential in the coming years. His vision is clear—to become the first global semiconductor company headquartered in India, with a strong presence across the US, Europe, Japan, and India. "We aim to establish India as the central hub for innovation, development, and eventually manufacturing in the semiconductor space. Our immediate goal is to achieve $1 billion in annual product revenue within the next seven years. Once we hit that milestone, we will explore building a factory or fab capable of producing 500 million chips annually," he explained.

The approach is customer-first, identifying the needs of large, strategic customers in sectors like automotive, industrial, and energy, and then building tailored solutions to address those needs. "By doing so, we ensure our products are market-ready from the outset, reducing the risk that comes with launching new technologies. In terms of innovation, we aspire to lead the shift towards software-defined systems. Our designs will empower the future of these sectors and position L&T Semiconductor as a pioneer in this transformation. Personally, it's my goal to see an Indian semiconductor company making a global impact, and this is just the beginning of that journey," he added.

Need for homegrown semiconductor product firms

India needs homegrown semiconductor product companies to establish self-reliance in critical technologies, especially as semiconductors play a foundational role in driving the digital economy. Having domestic semiconductor product companies ensures that India can secure its supply chain, reducing dependency on global players amidst geopolitical uncertainties. Moreover, building a strong semiconductor ecosystem within the country also aligns with the government's broader vision of becoming a global manufacturing hub.

"A homegrown semiconductor product company can also prioritize solutions that meet the unique challenges and opportunities of the Indian market while having the flexibility to pivot and innovate quickly in response to shifts in global demand." Recently, the company has announced discussions to engage in a research and development collaboration with IBM to design advanced processors. The scope of this work could include processor design for edge devices and hybrid cloud systems, as well as for areas like mobility, industrial, energy, and servers.

Currently, like any chip designer, L&T doesn't manufacture its own chips. Instead, it relies on chip manufacturers such as TSMC, among others. Although the company aims to establish its own fab in the long run, when asked about whether L&T will get chips manufactured in India from the already established players (till the time L&T doesn't have its own fab), the CEO said, "If it aligns with our technology, then why not?"

Govt support and creation of talent pool

When it comes to product development and semiconductor design, government support is crucial, but in a nuanced manner. While building fabs involves tangible infrastructure, product development requires a deeper technical understanding and the ability to evaluate long-term innovation potential. We need continued government backing that enables research, innovation, and the creation of a skilled talent pool to drive semiconductor design forward. "Furthermore, the government should consider increasing the INR 15 crore limit for domestic companies, as semiconductor designs are costly, with IPs potentially ranging from $100 million to $300 million," he added.

When it comes to running a great company, assembling a top-tier leadership is a challenge. However, Kumar took this head-on. "In just the first few months, I brought together some of the best minds in the semiconductor industry from across the globe. Each individual came with their own strengths and had never worked together before, which presented a unique challenge.The key was not just recruiting them, but also creating a cohesive environment where these 20 strong personalities could collaborate effectively as a team. Building that synergy has been crucial to our progress and is something I'm incredibly proud of," Kumar said, defining his boldest move in the company.

Shrabona Ghosh

Correspondent

A journalist with a cosmopolitan mindset. I lead a project called 'Corporate Innovations' wherein I cover corporates across verticals and try to tell stories on innovations. Apart from this, I write industry pieces on FMCGs, auto, aviation, 5G and defense. 
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