L&T Semiconductor Gears Up for Chip Manufacturing Boom

L&T Semiconductor Technologies plans to start manufacturing semiconductor products in the next two years, as it builds towards a revenue threshold of USD 50 million to USD 1 billion. Partnering with IBM for advanced processor design, the company eyes independence from foreign technology in India's semiconductor industry.

Fabless chip company L&T Semiconductor Technologies plans to commence the manufacturing of its semiconductor products within two years, according to CEO Sandeep Kumar.

Speaking to PTI, Kumar revealed that the company aims to set up chip manufacturing plants once it reaches a revenue threshold between USD 50 million and USD 1 billion across various semiconductor technologies. The company is halfway through building teams to manage around 15 different products simultaneously.

With a goal to hit full capacity within six months, Kumar said six product designs are already in progress, with designs slated for launch by the end of next year. Production is expected to start in two years. Kumar emphasized the importance of establishing a fabless chip firm to decrease India's dependency on foreign technology.

Highlighting the risks, Kumar mentioned that indigenous production ensures strategic value retention in India. He discussed potential challenges if a developed country decided to restrict technology sharing with India, which could halt the domestic tech sector.

In partnership with leading firms like IBM, L&T Semiconductor focuses on designing advanced processors for various applications. Initial production will be outsourced to semiconductor foundries abroad, with plans to explore local production if costs permit.

(With inputs from agencies.)