An upfront payment of Rs 133 crore has been agreed upon by L&T Semiconductor Tech, a wholly owned subsidiary of Larsen & Toubro, to purchase SiliConch Systems. The contract calls for a deferred payment of Rs 50 crore spread over four years, the business announced on July 9 in an exchange filing. By September 15th, the company hopes to have the deal finalized. This decision happened on the foot of burgeoning semiconductor market.
“The acquisition is expected to add IP, engineering skillsets and design expertise to strengthen the Group’s presence in fabless semiconductor business, and thus aligns with the overall growth strategy of L&T Semiconductor”, the company L&T Semiconductor stated.
SiliConch, a company founded in 2016, specializes in creating IPs for systems-on-chips with 61 individuals working at the enterprise. Original equipment manufacturers and fabless integrated chip manufacturers, mostly in the US, are the end users of the intellectual property (IPs) that SiliConch delivers. These companies develop power management systems for automobiles, cellphones, PCs, Internet of Things, and accessories. The company has 30 patents all over the globe.
Many companies are expanding their semiconductor company through acquisitions in the rapidly growing semiconductor market. Accenture, a technology consulting firm, revealed on Monday that it had acquired Excelmax Technologies, a Bengaluru-based provider of semiconductor design services. According to a news release from the firm, the acquisition strengthens Accenture’s expanding silicon design and engineering capabilities. This purchase comes after when in 2022, Accenture acquired XtremeEDA, an Ottawa, Canada-based silicon design services company.
The Indian IT services giant Infosys’ agreement to acquire Bengaluru-based semiconductor design and embedded services business InSemi for Rs 280 crore in January is another significant semiconductor purchase this year. Infosys claimed at the time that the transaction would complement its current investments in AI and automation platforms and assist speed its chip-to-cloud plan by adding specialized design capabilities at scale.