Indian conglomerate Larsen & Toubro (L&T) made a significant move in the semiconductor industry on Tuesday. The company announced that its wholly-owned subsidiary, L&T Semiconductor Technologies, will acquire fabless semiconductor design company SiliConch Systems for a total of Rs 183 crore. The acquisition cost comprises an upfront payment of Rs 133 crore and a deferred amount of Rs 50 crore, payable over a period of four years.
The acquisition was formally confirmed in a stock exchange filing by L&T. L&T Semiconductor Technologies Limited (LTSCT) entered into a share purchase agreement to acquire a 100% stake in SiliConch Systems Private Limited. According to L&T, the acquisition is expected to enhance their position in the fabless semiconductor business by incorporating SiliConch’s intellectual property, engineering skills, and design expertise. This strategic move aligns with the overall growth strategy of LTSCT.
The completion of the acquisition is anticipated by September 15th, subject to customary closing conditions. SiliConch, a fabless semiconductor design company specializing in System-on-Chip IP development, boasts a team of 61 employees and holds 30 granted patents across various regions. This acquisition highlights L&T’s ambition to expand its presence in the burgeoning semiconductor industry.
