Fabless chip startup backed by multi-billion Indian company wants to build a $10bn fab in India before 2027

Date:
Sat, 05 Apr 2025 04:32:00 +0000

Description:
Fabless chip startup LTSCT, backed by multi-billion Indian company, wants to build a $10bn fab facility in India.

FULL STORY ======================================================================Indian government is expected to contribute a staggering 90% of the cost The announcement comes as fab demands is heating up on the back AI explosive growth Construction of these fabs is a very long process and always lags demand, sometimes by years

L&T Semiconductor Technologies (LTSCT), a fabless chip startup backed by Indian engineering firm Larsen & Toubro, is planning to build a $10 billion wafer fabrication facility in India.

A report by eeNews Analog claims the ambitious plan hinges on LTSCT achieving $1 billion in annual revenue by the 20262027 fiscal year.

Founded in 2023 as a wholly owned subsidiary of Larsen & Toubro, LTSCT was created to design a range of semiconductor components, including MEMS
sensors, analog and mixed-signal ICs, RF chips, and smart power devices.
While the company hasnt yet started shipping chips, its CEO, Sandeep Kumar, expects commercial production to begin in the second half of 2025. Increasing ABF production by 50%

eeNews Analog says Kumar told Business Standard , A fab plant will require
an investment of over US$10 billion. Even with subsidies, it will mean an investment of US$1 billion. He noted the companys fab plans would be
triggered only if it achieves $1 billion in annual revenue by the 20262027 fiscal year.

The company is banking on Indias semiconductor push, which includes a $10 billion incentive program launched in 2021.

The Indian government is expected to contribute up to 90% of the cost of the proposed fab - a level of support that Kumar acknowledges is unusually high
by global standards. LTSCT isnt expected to seek outside funding beyond that.

eeNews Analog noted that LTSCTs long-term strategy would see it transition from a fabless designer to an integrated device manufacturer (IDM).

The company has already secured more than $300 million in funding from Larsen & Toubro to support its design efforts, with plans to develop 15 chip
products by 2027. You might also like TSMC and Broadcom could tear apart Intel's legendary business after 57 years India could be AI powerhouse as
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Link to news story: https://www.techradar.com/pro/fabless-chip-startup-backed-by-multi-billion-ind ian-company-wants-to-build-a-usd10bn-fab-in-india-before-2027


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