Larsen & Toubro (L&T) will be investing ₹830 crore in setting up a wholly-owned subsidiary dedicated to the field of fabless semiconductor chip design and product ownership. L&T’s emphasis will exclusively be on chip design and not on the actual manufacturing process mentioned CFO R Shankar Raman.
Acknowledging the intense competition in semiconductor manufacturing, especially from Chinese, Taiwanese, and Korean companies, Raman stressed that L&T currently has no plans to enter the manufacturing sector. He underscored the significance of semiconductor availability, citing the repercussions of the covid-induced chip shortage on production and the economy.
L&T, leveraging its existing expertise in engineering design through its subsidiary L&T Technology Services, intends to establish design centers in India and potentially establish an R&D center in the United States. As reported by ManufacturingToday, the brands primary focus would be on chip design for automotive and industrial applications.
