Larsen & Toubro (L&T) is making an important move into the semiconductor industry by investing over $300 million to establish a new fabless chip company. This investment will be spread over three years and aims to develop advanced processors.
Unlike traditional semiconductor firms, fabless companies focus on designing and selling chips while outsourcing their manufacturing.
It is to be noted that L&T’s new fabless chip company will differ from its existing L&T Semiconductor Technologies in several key ways. The new company will be fabless, meaning it will focus solely on designing and selling chips, while outsourcing the manufacturing to third-party foundries. In contrast, L&T Semiconductor Technologies is involved in various aspects of semiconductor manufacturing, including design, fabrication, and testing.
L&T's new venture will initially target sectors like automotive, industrial, and energy, which are undergoing substantial transformation. They plan to develop 15 different products by the end of this year, with sales expected to start in 2027. This initiative is part of India's broader strategy to build a robust semiconductor ecosystem and reduce reliance on imports.
The fabless company aims to develop advanced processors and plans to roll out 15 different products by the end of this year, with sales starting in 2027. While, L&T Semiconductor Technologies offers a wider array of semiconductor solutions, including integrated circuits and system-on-chip (SoC) designs.
This new initiative by L&T aligns with India’s broader strategy to build a robust semiconductor ecosystem and reduce reliance on imports. While L&T Semiconductor Technologies also contributes to this goal, the fabless company is specifically designed to accelerate innovation and development in advanced processor technologies.
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