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Time of India
12-06-2025
- Business
- Time of India
Indian firms target overseas assets to fast-track semiconductor ambitions
Strategic overseas acquisitions by India's nascent semiconductor companies are set to emerge as a key enabler for the country's ambitions in chip manufacturing and assembly, ensuring access to proprietary expertise, precision equipment, and critical intellectual property, experts told firms including Tata Electronics and L&T Semiconductor Technologies (LTSCT) have recently made significant moves to acquire foreign assets even as they invest in greenfield facilities within the acquisitions bring experienced engineering teams and operational know-how, which are essential for upskilling local workforces and establishing robust training pipelines, explained Kunal Chaudhary, partner and co-leader, inbound investment group, at EY India. LTSCT and Kaynes Semicon are jointly acquiring the power modules business of Fujitsu General Electronics, based in Japan, while opto-semiconductor maker Polymatech last year acquired US-based semiconductor equipment provider Nisene Technology Group to build an integrated chip manufacturing business. Tata Electronics is exploring takeovers of semiconductor fabrication and outsourced semiconductor assembly and test (OSAT) facilities in Malaysia. Chaudhary said while India has already built a strong presence in chip design, moving into OSAT — a high-margin segment that includes advanced packaging and assembly — will be key to climbing the value chain. With advanced packaging technologies becoming critical to semiconductor innovation, India's entry into this space could enhance its global positioning, he said. After Kaynes and LTSCT announced acquisition of Fujitsu General's power modules business for Rs 118.34 crore on Monday, Kaynes CEO Raghu Panicker said the deal opens up new avenues for advanced semiconductor packaging excellence. 'This move strengthens Kaynes' OSAT capabilities, while aligning with our long-term strategy of supporting global original equipment manufacturers through best-in-class technology and scalable infrastructure,' he told ET. Kaynes is one of the four companies under the India Semiconductor Mission 1.0 building OSATs in the country, while Larsen & Toubro has invested more than $300 million to create its fabless chip company LTSCT. ET on June 3 reported that Tata Electronics is in talks with several global semiconductor companies to acquire a fabrication or OSAT plant in Malaysia. The move is aimed at bolstering the Tata Group company's knowledge and talent base ahead of its ambitious foray into semiconductor fab, assembly and packaging in India. 'Most acquisitions and partnerships at the moment are really about two things: gaining access to trained talent – essentially acqui-hires – and jump-starting work on cutting-edge technologies,' said Prithvideep Singh, general manager at Mohali-based Continental Device India Ltd (CDIL) that has a partnership with German semiconductor manufacturer Infineon Technologies. 'Gaining access to know-how is only half the battle,' he said. 'Transferring it to Indian operations and building capability within local teams…demand years of groundwork, deep technical maturity, and process discipline.' Infineon supplies high performance silicon wafers, and CDIL packages and distributes advanced power semiconductors like MOSFETs and modules specifically tailored for the Indian market, including for electric vehicles and renewables. 'All the JVs and strategic partnerships are a result of the need for Indian entities to build their core competency with best in class proven technology and manufacturing processes,' said Neil Shah, cofounder and vice-president, research, at Counterpoint Research. He noted that matured nodes foundry and back-end packaging OSAT/ATMP are low hanging opportunities for new entrants. 'Building fabs for advanced nodes is still a distant dream for Indian enterprises as there are just three big players like TSMC, the leader, and Samsung and Intel, which are still struggling versus TSMC,' Shah said. 'So, high value fab will take time if at all one of them decides to set up in India in future, if the other ecosystems develop handsomely,' he explained. Biswajeet Mahapatra, principal analyst at Forrester, said acquiring assets of foreign entities allows Indian companies to access advanced technologies like wafer-level packaging, 2.5D/3D integration, and chiplet-based designs, which are critical for modern semiconductors. By leveraging foreign expertise and infrastructure, Indian companies can reduce reliance on imports for high-end packaging solutions and meet the growing demand from global OEMs like Apple and Intel, he explained. For the broader ecosystem, overseas acquisitions and partnerships can help bridge critical capability gaps. Given the current talent crunch in India, they offer a smart and often necessary path for companies entering the sector, experts said. But the real challenge lies in how effectively that know-how is embedded into Indian operations and scaled with consistency and quality, they added.
Time of India
12-06-2025
- Business
- Time of India
Indian firms target overseas assets to fast-track semiconductor ambitions
Strategic overseas acquisitions by India's nascent semiconductor companies are set to emerge as a key enabler for the country's ambitions in chip manufacturing and assembly, ensuring access to proprietary expertise, precision equipment, and critical intellectual property, experts told ET. Indian firms including Tata Electronics and L&T Semiconductor Technologies (LTSCT) have recently made significant moves to acquire foreign assets even as they invest in greenfield facilities within the country. These acquisitions bring experienced engineering teams and operational know-how, which are essential for upskilling local workforces and establishing robust training pipelines, explained Kunal Chaudhary, partner and co-leader, inbound investment group, at EY India. LTSCT and Kaynes Semicon are jointly acquiring the power modules business of Fujitsu General Electronics, based in Japan, while opto-semiconductor maker Polymatech last year acquired US-based semiconductor equipment provider Nisene Technology Group to build an integrated chip manufacturing business. Tata Electronics is exploring takeovers of semiconductor fabrication and outsourced semiconductor assembly and test (OSAT) facilities in Malaysia. Chaudhary said while India has already built a strong presence in chip design, moving into OSAT — a high-margin segment that includes advanced packaging and assembly — will be key to climbing the value chain. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories With advanced packaging technologies becoming critical to semiconductor innovation, India's entry into this space could enhance its global positioning, he said. After Kaynes and LTSCT announced acquisition of Fujitsu General's power modules business for Rs 118.34 crore on Monday, Kaynes CEO Raghu Panicker said the deal opens up new avenues for advanced semiconductor packaging excellence. 'This move strengthens Kaynes' OSAT capabilities, while aligning with our long-term strategy of supporting global original equipment manufacturers through best-in-class technology and scalable infrastructure,' he told ET. Kaynes is one of the four companies under the India Semiconductor Mission 1.0 building OSATs in the country, while Larsen & Toubro has invested more than $300 million to create its fabless chip company LTSCT. ET on June 3 reported that Tata Electronics is in talks with several global semiconductor companies to acquire a fabrication or OSAT plant in Malaysia. The move is aimed at bolstering the Tata Group company's knowledge and talent base ahead of its ambitious foray into semiconductor fab, assembly and packaging in India. 'Most acquisitions and partnerships at the moment are really about two things: gaining access to trained talent – essentially acqui-hires – and jump-starting work on cutting-edge technologies,' said Prithvideep Singh, general manager at Mohali-based Continental Device India Ltd (CDIL) that has a partnership with German semiconductor manufacturer Infineon Technologies. 'Gaining access to know-how is only half the battle,' he said. 'Transferring it to Indian operations and building capability within local teams…demand years of groundwork, deep technical maturity, and process discipline.' Infineon supplies high performance silicon wafers, and CDIL packages and distributes advanced power semiconductors like MOSFETs and modules specifically tailored for the Indian market, including for electric vehicles and renewables. 'All the JVs and strategic partnerships are a result of the need for Indian entities to build their core competency with best in class proven technology and manufacturing processes,' said Neil Shah, cofounder and vice-president, research, at Counterpoint Research. He noted that matured nodes foundry and back-end packaging OSAT/ATMP are low hanging opportunities for new entrants. 'Building fabs for advanced nodes is still a distant dream for Indian enterprises as there are just three big players like TSMC, the leader, and Samsung and Intel, which are still struggling versus TSMC,' Shah said. 'So, high value fab will take time if at all one of them decides to set up in India in future, if the other ecosystems develop handsomely,' he explained. Biswajeet Mahapatra, principal analyst at Forrester, said acquiring assets of foreign entities allows Indian companies to access advanced technologies like wafer-level packaging, 2.5D/3D integration, and chiplet-based designs, which are critical for modern semiconductors. By leveraging foreign expertise and infrastructure, Indian companies can reduce reliance on imports for high-end packaging solutions and meet the growing demand from global OEMs like Apple and Intel, he explained. For the broader ecosystem, overseas acquisitions and partnerships can help bridge critical capability gaps. Given the current talent crunch in India, they offer a smart and often necessary path for companies entering the sector, experts said. But the real challenge lies in how effectively that know-how is embedded into Indian operations and scaled with consistency and quality, they added.
Time of India
09-06-2025
- Automotive
- Time of India
Kaynes Semicon, L&T arm to acquire Fujitsu General's power modules business
Kaynes Semicon and L&T Semiconductor Technologies (LTSCT) are acquiring Japanese Fujitsu General 's power modules business for Rs 118.34 crore. Fujitsu will transfer the business to Larsen & Toubro's fabless chip company and related production facilities to Kaynes, which will in turn manufacture these products for LTSCT, the companies said. The transaction is expected to close on June 23, pending regulatory clearance under Japan's Foreign Exchange and Foreign Trade Act. 'The new OSAT facility being setup in Sanand, Gujarat, is launching its operations with a focus on the global power device packaging market,' Raghu Panicker, chief executive of Kaynes Semicon, told ET. Mysuru-based Kaynes is one of the production contractors for LTSCT. The LTSCT specialises in semiconductor product development, manufacturing, and sales. Kaynes is one of the four companies under the India Semiconductor Mission 1.0 building OSATs in the country. Live Events The deal is part of Fujitsu's strategy to streamline operations within its tech solution business and reinforce its overall business foundation. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Panicker said the deal is supported by two major initiatives: a multi-million-dollar, high-volume service agreement with its customer Alpha and Omega Semiconductor (AOS) and the acquisition of three power packaging lines from Fujitsu Electronics Ltd Japan. 'The partnership with AOS will cover core power devices like IGBTs, power modules and MOSFETs with volumes projected to reach nearly 670 million units annually, while the Fujitsu technology provides immediate capability for high-reliability automotive and industrial-grade power modules, adding a production capacity of approximately 0.6 million units per month,' he said. These moves position the company as a significant new player in the power electronics supply chain , Panicker said. By combining a foundational, high-volume customer with advanced packaging technology and immediate production capacity, the company is poised to meet the surging global demand for power semiconductors driven by the electric vehicles , renewable energy , and industrial automation sectors, he said. This establishes a vital new capability in India's domestic semiconductor ecosystem and addresses the global need for a more resilient and diverse manufacturing footprint for power devices. L&T has invested more than $300 million to create LTSCT. Fujitsu General, in a regulatory filing on Monday, announced the divestiture of its power module business operated by its consolidated subsidiary, Fujitsu General Electronics (FGEL). This transaction is expected to result in the recording of an extraordinary gain of approximately 2 billion yen (about $13.8 million) from the business transfer in the April-June 2025 quarter, it said. Reasons for the Divestiture FGEL's tech solutions division is involved in the development, manufacturing, and sale of electronic devices, as well as the manufacturing of information and communication equipment. The divestiture of the power module business is part of a broader portfolio transformation within the electronic device business, aimed at strengthening the Fujitsu General Group's business foundation, it said.
Time of India
09-06-2025
- Business
- Time of India
Japan's Fujitsu General to transfer power modules biz to India's LTSCT for ₹118.34-crore
NEW DELHI: Japan's Fujitsu General is transferring its power modules business to India's L&T Semiconductor Technologies Limited (LTSCT) for about 2 billion yen (~₹118.34 crore), as the former's Fujitsu General Electronics subsidiary consolidates its portfolio. Fujitsu will transfer the production facilities related to the power modules business to Bengaluru-headquartered Kaynes Semicon , which will, in turn, manufacture these products for LTSCT. 'Fujitsu General Limited…resolved at its board of directors meeting held on June 9, 2025, to transfer the (power modules) business to L&T Semiconductor Technologies Limited…and transfer the production facilities related to the business to Kaynes Semicon Private Limited, one of LTSCT's manufacturing contractors,' the Japanese firm said in a statement Monday. The company said it is transferring the business as part of a "portfolio transformation of the electronic device business in line with strengthening the company group's business foundations". Consequently, Fujitsu said it will record an extraordinary gain of 2 billion yen in the first consolidated fiscal quarter of 2025, ending March 31. As per media reports in 2024, Larsen & Toubro has invested more than $300 million to create its fabless chip company, LTSCT, joining efforts by other Indian conglomerates in the booming semiconductor industry. News agency PTI had reported that L&T chip unit expects to commence manufacturing of in-house designed products in the next two years. Prime Minister Narendra Modi's government in September last year approved Kaynes' proposal to set-up a semiconductor unit in Sanand, Gujarat, with an investment of ₹3,300 crore. Once operationalised, the plant will have a capacity of 60 lakh chips per day.
Entrepreneur
02-06-2025
- Automotive
- Entrepreneur
GPUs, Fab, Products: L&T Semiconductor Is Paving Its Way Ahead
Opinions expressed by Entrepreneur contributors are their own. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. With a pipeline of more than 50 customers and 11 active projects on the product side, L&T Semiconductor Technologies (LTSCT), a fabless chip company, is ready to power India's semiconductor aspirations. The company also has plans on rolling out graphics processing units (GPUs), however it is time-bound. This financial year(FY) is on track and LTSCT is ahead of its plans– that's what the top boss believes, "I think we are going well on track, maybe ahead of our plan. Our focus is on acquiring customers and I think we are making a lot of positive progress in Japan, Europe, U.S. and in India. GPUs are in the pipeline but it's not a six month project. Our GPU program is active, it will take some time to come to market. Things can evolve and change in the next five years," said Sandeep Kumar, CEO of LTSCT. "We will have a strong portfolio for the future needs of India. That should all come together by the end of June. We are also finalizing the licensing of the CPU, GPU, NPU, ISP," he added. Talking about the highest performing sector, the CEO emphasized on the opportunities in the automotive and industrial sectors. The company is working on various programs, and the automotive sector holds high importance. The company will be kicking off an automotive program soon, which will firm up the type of CPU, GPU, NPU, AI processor, the company would require to work on. "The demand is coming from all, but the traction is driven by where we are putting more energy. So far, the first year we were focused on automotive. We will have significant traction in the industrial sector within a few months. Then in the energy sector, we are heavy on the customer interest, but we are still finalizing on the right products. Datacenter, solar, wind, battery, storage, we have a lot of demand, but we haven't finalized our products yet. In about six months, we would be able to decide," he said. Talking about revenue generation, he shared, "We have programs that will start generating revenue this year in the industrial sector. Then there are projects that will start generating revenue in the industrial and energy sector from next financial year. Programs in the automotive sector have a longer lead time, maybe three years from now and then data center projects would yield revenue in four or five years." LTSCT's main focus is to add more customers. Its clientele is 20-30 percent India based and 30 percent Europe. The rest is Japan and the US at 20 percent each. Kumar had been nurturing the idea that India must stop being the back office of the global semiconductor industry and start owning its semiconductor IP. At a time when Indian semiconductor companies were moving into manufacturing and assembly, he took a different route: He ventured into chip design and that's where the power lies. Kumar earlier revealed that the company plans to establish its own chip manufacturing plants once it achieves a revenue threshold between USD 50 million and USD 1 billion across different semiconductor technologies– however, it might be a different case now. "Each of these products is different with differences in customers and technology. The development cycle on these products can be up to two years. So, once we are in production, then we will have the clarity or the visibility on what kind of fab we want. There is some kind of a plan when you start with, but then the reality is different. We are still a year and a half away from taking any decision on fabs," he explained.
