L&T Semiconductor to Acquire Bengaluru-based SiliConch Systems for ₹183 Crore

L&T Semiconductor Technologies (LTSCT), a fully owned subsidiary of Larsen & Toubro (L&T), recently announced its plan to acquire Bengaluru-based SiliConch Systems for ₹183 crore. This strategic move aims to enhance L&T's fabless semiconductor business.

SiliConch Systems specializes in developing semiconductor Intellectual Property (IP) and Integrated Circuits (IC). Their expertise will strengthen L&T's engineering capabilities in this domain. The acquisition includes an upfront payment of ₹133 crore and a deferred ₹50 crore over four years, contingent on specific targets. By September, pending customary conditions, the deal is expected to be finalized.

Interestingly, this is second Indian semiconductor-based company to get acquired by the global firm within a couple of days, and both the companies are based out of Bengaluru. To recall, yesterday Accenture announced the acquisition of Excelmax Technologies, a semiconductor design services provider based in Bengaluru. This strategic acquisition enhances Accenture's growing silicon design and engineering capabilities.

Incorporated in April 2016, SiliConch Systems has a team of engineers focuses on transformative work in pre-silicon products, specializing in delivering mixed-signal solutions in power management and high-speed input/output (I/O) applications.

The founders of SiliConch Systems — Vishnu Pusuluri, Jaswanth Ammineni, Rakesh Kumar, Kaustubh Kumar, Vinay Patel, Abhishek Sardeshpande, and Shubham Paliwal —embarked on their journey in April 2016. Their motivation was to specialize in the development and design of semiconductor Intellectual Property (IP) and Integrated Circuits (IC). As a fabless semiconductor design company, SiliConch focuses on system-on-chip IP, contributing to power management systems for smartphones, automotive devices, and accessories.

SiliConch actively contributes to the USB Implementers' Forum (USB-IF) standards, ensuring that their products adhere to the latest industry specifications and innovations. The company offers cutting-edge solutions for the USB Type-C ecosystem, which is a reversible connector supporting various protocols and delivering power, data, and video signals through a single cable.

SiliConch Systems provides the industry's first Multi-port USB Type-C Power Delivery IP solution to system-on-chip (SoC) vendors. This IP enables efficient power delivery and data transfer in devices like smartphones, PCs, automotive systems, IoT devices, and accessories.

SiliConch generates revenue primarily through non-recurring engineering (NRE) revenue and license fees. The company's IPs find application in OEMs and fabless IC companies, primarily in the U.S., for power management systems.

With 30 granted Patents across geographies, SiliConch Systems has been making significant strides. In the fiscal year 2023-24, their turnover stood at ₹27.68 crore, while in FY21-22 and FY22-23, it was ₹11.02 crore and ₹19.97 crore, respectively

L&T's recent acquisition of SiliConch Systems aims to strengthen their presence in the fabless semiconductor business by adding IP, engineering skillsets, and design expertise.

Besides the recent acquisition of SiliConch Systems, L&T has been active in the acquisition space. In April 2019, L&T acquired Mindtree, a leading IT services company, to strengthen its presence in the technology sector. In May 2022, L&T announced the merger of its two software companies, L&T Infotech (LTI) and Mindtree, creating a formidable player in the IT services industry.

Back in October 2014, L&T acquired L&T Ramboll Consulting Engineers, enhancing its capabilities in real estate and infrastructure development.
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