L&T To Incorporate Fabless Semiconductor Chip Arm For Rs 830 Crore

Larsen & Toubro Ltd. will incorporate a fabless semiconductor chip arm for Rs 830 crore.

The company's board approved the incorporation of a wholly owned subsidiary to engage in the business of fabless semiconductor chip design and product ownership, it said in its exchange filing.

Additional details of the investment will be intimated in due course, the statement said.

A fabless chipmaker designs and sells the hardware and semiconductor chips but does not manufacture the silicon wafers, or chips, used in the products. Instead, it outsources the fabrication to a manufacturing plant or foundry.  

Earlier this month, Kaynes Technology India Ltd. inked a pact with the Telangana government to set up a semiconductor plant in the state for Rs 2,800 crore.

The proposed facility will be set up in Kongara Kalan, adjacent to the upcoming electronics manufacturing facility of Foxconn, the statement said.

Union Minister Ashwini Vaishnaw last month said two big semiconductor proposals are under process and expected to take shape in the coming months. 

"This has developed India as a major trusted geography in which global industry players want to come. We can see in the coming few months at least two more large semiconductor proposals taking shape," Vaishnaw said.

Larsen and Toubro on Tuesday announced that its profit for the second quarter rose, surpassing analysts' estimates, led by strong execution and accelerated progress in the projects and manufacturing portfolio.

Shares of Larsen and Toubro closed 0.11% lower at Rs 2,923 apiece, as compared with a 0.32% decline in the benchmark Nifty 50 on Tuesday.