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Indian fabless chip startup floats US$10 billion fab plan

Indian fabless chip startup floats US$10 billion fab plan

Business news |
By Peter Clarke



The CEO of fabless chip company L&T Semiconductor Technologies Ltd. (Bengaluru, India) has said he has a plan to build a US$10 billion wafer fab using subsidies.

Founded in 2023 LTSCT is a wholly-owned subsidiary of Larsen & Toubro Ltd. (Mumbai, India), an engineering conglomerate. The startup was formed to provide a broad variety of semiconductor components including MEMS sensors, analog and mixed-signal ICs, RF circuits and smart power chips.

Sandeep Kumar, the CEO of LTSCT, has revealed a plan to convert the fabless chip company into an integrated device manufacturer (IDM). The triggering of the plan would depend on LTSCT achieving US$1 billion in annual revenue in the 2026-2027 year, CEO Sandeep Kumar reportedly said in an interview with the Business Standard.

“A fab plant will require an investment of over US$10 billion. Even with subsidies, it will mean an investment of US$1 billion,” the interview quoted him saying. A 90 percent subsidy is far above what is normal, although India has been more generous than most regions in its eagerness to help the country participate in the semiconductor industry.

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Having been founded in 2023, LTSCT has yet to start shipping chips as fabless chip company. That is expected to come later in 2025, the report said. That means Kumar is talking about US$1 billion in annual revenue within two years of starting trading and within four years of the company being formed.

Although the ambition may seem incredibly lofty Larsen & Toubro Ltd. is a broad conglomerate that ranges from civil to military engineering and financial services. It made a net profit of US$1.5 billion on revenues of US$25.6 billion in the year ended March 31, 2024. Revenues were up 21 percent compared with the previous year.

Related links and articles:

www.ltsct.com

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