L&T Semiconductor to buy SiliConch for $22m
India's Larsen & Toubro (L&T) is negotiating to acquire Bengaluru-based SiliConch Systems in a bid to enhance its presence in the fabless semiconductor sector.
In a stock exchange filing, L&T Semiconductor Technologies (a wholly-owned subsidiary of L&T) reported it had entered into a share purchase agreement to acquire a 100% stake in SiliConch Systems Private Limited. The fee is believed to be Rs183 crore, which equates to around USD 22 million.
L&T is one of India's largest industrial conglomerates, with subsidiaries in technology, engineering, finance, construction, manufacturing and more/ This move is clearly intended to strengthen its status in the country's growing domestic chip space. SiliConch is a specialist in semiconductor IP and IC design, which serves customers in the US, including OEMs and fabless IC companies.
“The acquisition is expected to add IP, engineering skill-sets and design expertise to strengthen the group's presence in the fabless semiconductor business, and thus aligns with the overall growth strategy of LTSCT,” said the company in a statement.
The acquisition of SiliConch is expected to be completed by September 15.
