L&T Semicon Eyes Manufacturing of Semiconductor Products by 2026, Says CEO The company is actively building teams to manage the design of 15 different semiconductor products simultaneously and is already halfway through this process.

By Entrepreneur Staff

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L&T Semiconductor Technologies, a fabless chip company, expects to begin manufacturing semiconductor products designed by the company within the next two years, according to its CEO, Sandeep Kumar. Speaking to PTI, Kumar revealed that the company plans to establish its own chip manufacturing plants once it achieves a revenue threshold between USD 50 million and USD 1 billion across different semiconductor technologies.

The company is actively building teams to manage the design of 15 different semiconductor products simultaneously and is already halfway through this process. Kumar stated that full capacity would be achieved within the next six months, with product designs rolling out by the end of 2024. These designs will enter production by 2026.

As a fabless chip firm, L&T is focusing on reducing India's reliance on foreign semiconductor manufacturers.Kumar emphasized the risks of dependence on external suppliers. He highlighted that if a foreign nation were to stop sharing technology, it could cripple the domestic semiconductor sector. By creating indigenous products, India can retain control and ensure strategic value in the global market.

L&T Semiconductor has already started forging strategic partnerships, including a recent agreement with IBM to collaborate on research and development of advanced processors. These processors could be used in a variety of fields, including mobility, industrial electronics and cloud systems. The chips developed by L&T will initially be produced at foundries outside India, but Kumar noted the company may consider domestic production if the cost is feasible.

"A 28-nanometer fab and above is roughly USD 10 billion. In order to turn that into a profitable business, you need to have sales of roughly a billion dollars per year from that fab. We need to achieve that kind of sales outlook with high confidence before we decide to embark on setting up a silicon fab at 28 nanometers," he said. For smaller, cutting-edge chips like 2-5 nanometer nodes, Kumar estimated the cost at USD 100 billion, with a sales target of USD 10 billion.

Semiconductor companies in India are partnering with academic institutions to bridge the prevailing skills gap amid the rising demand for talent in this sector that is expected to touch $80.3 billion by 2028.

The semiconductor industry in India is expected to face a shortage of 250,000 to 300,000 professionals across various verticals, including research and development (R&D), manufacturing, design, and advanced packaging, by 2027, according to a report by TeamLease Degree Apprenticeship. Read more

Entrepreneur Staff

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