- The Indian government is expected to contribute a staggering 90% of the cost
- The message comes as the FAB requirements are heated on the rear AI -explosive growth
- Construction of these Fabs is a very long process and always hangs demand for years, sometimes after years
L&T Semiconductor Technologies (LTSCT), a Fabless Chip start -up, backed by the Indian engineering firm Larsen & Toubro, plans to build a $ 10 billion dollars -manufacture facility in India.
A report from EENEWS Analog Claims that the ambitious plan is linked to LTSCT, which achieves $ 1 billion in annual revenue before the financial year 2026–2027.
Founded in 2023 as a whole-owned subsidiary of Larsen & Toubro, LTSCT was set up to design a number of semiconductor components, including MEMS sensors, analog and mixed signal ICS, RF chips and smart power units. While the company has not yet started sending chips, its CEO, Sandeep Kumar, expects commercial production in the second half of 2025.
Rising ABF -Production by 50%
EENEWS Analog says Kumar Business Standard“A Fab Plant requires an investment of over $ 10 billion. Even with subsidies, it will mean a $ 1 billion investment.” He noted that the company’s FAB plans would only be triggered if it achieves $ 1 billion in annual revenue before the financial year 2026–2027.
The company is knocking on India’s Semiconductor Push, which includes an incentive program of $ 10 billion launched by 2021.
The Indian government is expected to contribute up to 90% of the cost of the proposed FAB – a level of support that Kumar recognizes is exceptionally high by global standards. LTSCT is not expected to seek funding outside of it.
EENEWS Analog noted that LTSect’s long -term strategy would see the transition from a Fabless designer to an integrated device manufacturer (IDM).
The company has already secured more than $ 300 million in financing from Larsen & Toubro to support its design efforts with plans to develop 15 chip products in 2027.
