L&T strengthens its semiconductor business with ₹183 crore acquisition of SiliConch

L&T's semiconductors branch, L&T Semiconductor Technologies (LTSCT), revealed intentions to purchase SiliConch Systems, located in Bengaluru. LTSCT will acquire full ownership of the company in a deal worth Rs 183 crore.

SiliConch is a design firm that is eight years old and does not own fabrication facilities, focusing on intellectual property (IP) and developing system-on-chip designs.

The purchase will be completed with an initial payment of ₹133 crore, with a further payment of ₹50 crore spread over four years, contingent upon meeting specific goals and conditions. The total acquisition cost for L&T amounts to ₹183 crore.

L&T anticipates that the acquisition will enhance its presence in the fabless semiconductor industry by bringing in Intellectual Property (IP), engineering capabilities, and design expertise, aligning with the growth strategy of L&T Semiconductor Technologies.

L&T stated in a filing that the acquisition is anticipated to be finalized by September 15, 2024, pending regular closing conditions.

SiliConch Systems Pvt. Ltd. was established in April 2016 in Bengaluru, focusing on creating semiconductor Intellectual Property (IP) and Integrated Circuits (IC).

From 2022 to 2024, SiliConch's revenue was ₹11.02 crore in 2022, ₹19.97 crore in 2023, and ₹27.68 crore in 2024. On Monday, L&T secured a substantial order worth ₹15,000 crore from a top developer in the Middle East to construct two large-scale solar PV plants totaling 3.5 GW.

Orders ranging from ₹10,000 crores to ₹15,000 crores are categorized by L&T as 'mega'.