In a formal statement, Larsen & Toubro disclosed that fabless semiconductor design business SiliConch Systems is being acquired by its wholly-owned subsidiary L&T Semiconductor Technologies(LTSCT) for a sum of Rs 183 crore.The acquisition cost is divided into an upfront payment of Rs 133 crore and a four-year deferred payment of Rs 50 crore.
With this initiative, LTSCT hopes to strengthen its fabless capabilities in India, add design and technical know-how, and take advantage of its strategic potential in the burgeoning Indian semiconductor industry.
According to the company, a share purchase agreement has been reached by L&T Semiconductor Technologies Limited (LTSCT) to acquire a 100% shareholding in SiliConch Systems Private Limited.
“The acquisition is expected to add IP, engineering skill-sets and design expertise to strengthen the Group’s presence in the fabless semiconductor business, and thus aligns with the overall growth strategy of LTSCT,” said the group company.
The acquisition of SiliConch is expected to be completed by September 15, subject to customary closing conditions.
The acquisition is likely to be completed by September, subject to customary closing conditions. Semiconductor ecosystem consists of three parts – designing, manufacturing and testing.
The acquisition cost consists of “an upfront amount of Rs 133 crore payable at closing, subject to customary closing adjustments; and a deferred amount of Rs 50 crore payable over four years, subject to closing adjustments and achievement of certain targets and other conditions,” the filing said.
Founded in April 2016, SiliConch is a semiconductor intellectual property (IP) and integrated circuit (IC) development and design specialist. This fabless semiconductor design company creates intellectual property for systems-on-chips and has 30 granted patents worldwide.
With 61 workers, SiliConch is a fabless semiconductor design firm that creates intellectual property for systems on chips and has 30 awarded patents worldwide.
The first significant Indian semiconductor product company, L&T Semiconductor Technologies (LTSCT), is a wholly owned subsidiary of L&T and a fabless business that designs and manufactures smart devices for customers throughout the world. a business that helps clients realize high-performance, energy-efficient systems to take advantage of software-defined technology, electrification, data, and other advances in semiconductor devices and technology collaborations.
To support the automotive, industrial, energy, and telecommunication verticals, LTSCT goal is to develop an India-based semiconductor portfolio of smart devices spanning MEMS sensors, power, analog mixed signal, and RF products.
LTSCT has offices in Austin, Munich, London, Tokyo, Bangalore, Chennai, and four other major regions: the US, Europe, Japan, and India.
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