L&T Semiconductor Technologies, a division of India’s largest infrastructure company Larsen & Toubro, is set to finalize contracts with six automobile companies by the end of September, marking its first major business deals, according to CEO Sandeep Kumar. The contracts are expected to be valued at $150 million annually.
Launched in November 2023 with a $100 million investment from its parent company, L&T Semiconductor has yet to generate revenue but has strategically focused on the automotive sector. Kumar explained that securing contracts in the automotive industry often leads to long-term business relationships, typically spanning over a decade.
Within the next two weeks, the company plans to sign agreements with three Indian automotive firms and three European companies by the end of September. The names of these clients remain undisclosed pending joint announcements.
L&T Semiconductor designs chips for various vehicle functions such as windows, air conditioning, and power delivery, positioning itself against competitors like Qualcomm and NXP Semiconductors. While the company currently does not manufacture its own chips, Kumar indicated plans to eventually build a factory once they have a clear path to $1 billion in annual sales, a milestone he expects to reach within seven years.
This development follows Tata Group’s efforts earlier this year to establish India’s first semiconductor fabrication facility in Gujarat, signaling growing momentum in the country’s semiconductor industry. L&T Semiconductor Technologies Ltd. (LTSCT), a wholly-owned subsidiary of Larsen & Toubro, is a global leader in fabless semiconductor design. The company specializes in crafting innovative solutions and offering a comprehensive range of services to customers worldwide.
LTSCT provides advanced semiconductor devices, solutions, and technology partnerships aimed at developing energy-efficient, high-performance systems that leverage trends in data, electrification, and software-defined technologies. With R&D centers located in Bangalore, Delhi, and Chennai, and product engineering and sales divisions in Austin, Munich, and Tokyo, LTSCT is well-positioned to support its global clientele.
