| Work Detail |
L&T Semiconductor Technologies, a fabless chip company, is gearing up to begin manufacturing semiconductor products designed by the firm within the next two years, according to CEO Sandeep Kumar. In an interview with PTI, Kumar revealed that the company plans to establish chip manufacturing plants after achieving a revenue threshold ranging from $50 million to $1 billion for various semiconductor technologies.
Kumar mentioned that L&T Semiconductor is currently developing teams to handle approximately 15 different products simultaneously, with significant progress already made. “We will have the full force ready in the next six months. By the end of this year, we will be able to handle 15 parallel product designs. Since we have half the team in place, around six product designs have already begun, and these designs are expected to launch by the end of next year, with production slated to start in two years,” he stated.
Emphasizing the importance of becoming a fabless chip firm, Kumar noted that it is crucial for India to reduce its dependency on foreign semiconductor manufacturers. He argued that building indigenous products ensures strategic retention within the country and mitigates risks associated with reliance on external technology sources.
Kumar raised concerns about the potential halt of Indias technology sector if developed countries were to stop sharing technology. He stressed that having indigenous products assures their retention in India and is less vulnerable to external control.
L&T Semiconductor Technologies is part of a broader semiconductor investment wave in India, with companies like Tata Electronics, Micron, and others planning significant investments. Kumar highlighted that L&T has entered into a partnership with IBM for research and development collaboration focused on advanced processor design for various applications.
The company aims to work on chip technologies ranging from 2 nanometers (nm) to 130 nm, with initial production likely outsourced to a semiconductor foundry before potentially moving to in-house production if costs are feasible. Kumar outlined the significant financial requirements for establishing fabrication plants, noting that a 28-nm fab would necessitate a $10 billion investment, with a sales outlook of $1 billion annually to ensure profitability.
Additionally, he mentioned the potential for semiconductor technologies like silicon carbide and gallium nitride, which require lower investment but are projected to be developed sooner than larger fabrication plants. Overall, L&T Semiconductor is strategically positioning itself in the evolving semiconductor landscape, focusing on sustainable growth and innovation. |
