India’s Chip Ambitions Scale Up: L&T Semiconductor Buys Fujitsu Power IP for ₹110 Crore

India’s Fabless Chipmaker Accelerates Global Expansion with Japan Deal

In a move that signals India’s rising ambitions in the global semiconductor arena, L&T Semiconductor Technologies (LTSCT) has acquired the power module design assets of Fujitsu General Electronics (FGEL) for ¥2 billion (₹110 crore). The acquisition includes proprietary IP, patents, and R&D infrastructure focused on high-efficiency power electronics—critical for electric vehicles, industrial automation, and energy systems.

The deal, approved by FGEL’s board on June 9, is expected to close by September 23, pending regulatory clearance under Japan’s Foreign Exchange and Foreign Trade Act. LTSCT’s manufacturing partner, Kaynes Semicon Pvt Ltd, will simultaneously take over FGEL’s production facilities, creating a dual-pronged expansion into design and fabrication.

This acquisition marks a pivotal step in India’s journey toward semiconductor self-reliance,” said Sandeep Kumar, CEO of LTSCT and Chair of India’s Semiconductor Product Leadership Forum. “We’re not just buying assets—we’re inheriting decades of design excellence.

Why This Matters: Power Electronics as a Strategic Frontier

• Design patents and IP for high-voltage, high-efficiency modules
• R&D equipment for prototyping and testing
• A foothold in Japan’s advanced semiconductor ecosystem

FGEL, a legacy player in precision electronics, expects to record an extraordinary gain of ¥2 billion in its Q1 FY26 earnings.

Global Strategy: Fabless, Focused, and Expanding

• Targeting $500 million in revenue before considering an IPO
• Exploring entry into China by FY27, with outsourced production
• Investing ₹300 crore in R&D, with over a dozen products in development

This acquisition complements LTSCT’s broader strategy to become a global supplier of industrial and automotive chips, while anchoring India’s position in the semiconductor value chain.

India’s Semiconductor Vision: 100 Design Firms by 2035

As Chair of the Semiconductor Product Leadership Forum, Kumar is spearheading a national initiative to launch 100 new chip design firms by 2035. The goal: transform India from a backend service provider into a global IP powerhouse.

We’re building an ecosystem where design leads, not follows,” Kumar emphasized. “This deal is proof that Indian firms can compete—and win—on the global stage.

What’s Next

• Expand product portfolio across energy, mobility, and industrial sectors
• Deepen global partnerships in Japan, Europe, and the US
• Accelerate India’s transition from chip consumer to chip creator

As the world races to secure semiconductor supply chains, LTSCT’s strategic bet on design-first innovation could be a blueprint for India’s tech future.