L&T Acquires Bengaluru-based SiliConch Systems For Rs 183 Cr
This acquisition is expected to support L&T's presence in the semiconductor ecosystem, which encompasses designing, manufacturing and testing
Larsen & Toubro (L&T) on Tuesday announced a strategic acquisition of Bengaluru-based SiliConch Systems for Rs 183 crore, which will enhance its capabilities in the fabless semiconductor sector.
L&T Semiconductor Technologies Ltd, a wholly-owned subsidiary of the conglomerate, signed a share purchase agreement on 8 July 2024. The transaction is anticipated to close by September, includes an initial payment of Rs 133 crore, followed by a deferred amount of Rs 50 crore payable over four years, contingent on certain targets and conditions.
SiliConch Systems, established in April 2016, specialises in the development and design of semiconductor Intellectual Property (IP) and Integrated Circuits (IC). As a fabless semiconductor design firm, it has secured 30 patents across various geographies. The company generates its revenue primarily through non-recurring engineering services and license fees, catering to a clientele that includes Original Equipment Manufacturers (OEMs) and fabless IC companies, predominantly based in the United States. These customers utilise SiliConch’s IPs in developing power management systems for smartphones, automotive applications, and accessories.
This acquisition is expected to support L&T's presence in the semiconductor ecosystem, which encompasses designing, manufacturing and testing. By integrating SiliConch’s advanced IP and IC design capabilities, L&T aims to strengthen its position in the market and enhance its portfolio with cutting-edge semiconductor technologies.
