L&T Semiconductor Tech To Buy SiliConch Systems For Rs 183 Crore By CIOTechOutlook Team

L&T Semiconductor Tech To Buy SiliConch Systems For Rs 183 Crore

CIOTechOutlook Team | Wednesday, 10 July 2024, 05:21 IST

SiliConch Systems, based in Bengaluru, will be acquired by L&T Semiconductor Technologies (LTSCT), the semiconductor subsidiary of Larsen & Toubro (L&T). The arrangement, esteemed at Rs 183 crore, will see LTSCT take a 100 percent stake in the organization.

SiliConch is a fabless semiconductor design company that has been in business for eight years and focuses on IP and system-on-chip development. LTSCT's growth strategy in the fabless semiconductor market is expected to be supported by the acquisition, which is expected to expand the company's IP and engineering expertise. The agreement calls for a upfront payment of Rs. 133 crore as well as a deferred payment of Rs. 50 crore that will be made over the course of four years if certain conditions are met. L&T anticipates closing the acquisition by September 15, 2024.

This deal demonstrates a developing trend in the Indian IT industry. To expand their semiconductor design capabilities, major players like Accenture and Infosys have recently made acquisitions that are comparable to this one. The growing significance of this sector is further emphasized by initiatives like the India Semiconductor Mission, which are part of the government of India's push for domestic chip development.

SiliConch was established in 2016 with 61 employees and 30 worldwide granted patents. The firm's primary sources of revenue are fees for IP licensing and engineering services that are not recurring. In the United States, their focus is on power management systems for various devices, and their clients include OEMs and fabless chip companies.