L&T Semiconductor eyes IPO after hitting $500M revenue milestone: Report

The semiconductor arm of Larsen & Toubro, now nearing two years of operations, is pursuing a fabless model with no immediate plans to set up fabrication (fab) or outsourced semiconductor assembly and test (OSAT) facilities.

Instead, it is prioritising product development, customer acquisition, and selective acquisitions.

Since launch, the company has built a core team, closed two acquisitions, and initiated about a dozen product designs expected for release within a year.

It has also signed partnerships with 7–8 companies, one-third in India and the rest across Japan, Europe, and the US.

Kumar highlighted strong demand in industrial and automotive applications, which have longer development cycles, and noted an entry into the energy sector through silicon carbide technology. More recently, the company has begun building a presence in telecom.

Acquisitions remain central to L&T Semiconductor’s strategy. Kumar pointed to the takeover of a Fujitsu unit, which brought technology, customers, and immediate revenue gains.

The company has invested $100 million in R&D out of a $300 million commitment.

While it was not eligible for the government’s first Design Linked Incentive (DLI) scheme—restricted to startups—it plans to apply in the next phase if eligibility expands.

Kumar said the semiconductor business aligns with L&T Group’s strategy to diversify into advanced technologies beyond its traditional engineering and infrastructure base.