Larsen & Toubro Ltd.’s (L&T) semiconductor arm agreed to acquire a 100% stake in SiliConch Systems Private Ltd. for 183 crore rupees ($22 million) in cash to strengthen its presence in fabless semiconductor business.

L&T Semiconductor Technologies Ltd. (LTSCT) will make an upfront payment of 133 crore rupees to acquire the Bengaluru-based SiliConch, L&T said in a stock exchange announcement. A deferred amount of 50 crore rupees is also payable over four years, subject to closing adjustments and achievement of certain targets and other conditions.

SiliConch, incorporated in April 2016, specializes in the development and design of semiconductor intellectual property (IP) and integrated circuits (IC). The company, with a team of 61 employees, has 30 granted patents across geographies and generates income primarily thorough non-recurring engineering revenue and license fees.

The end customers of IPs delivered by SiliConch are OEMs and fabless IC companies, primarily in the US that provide power management systems for smartphones, PCs, automotive, Internet of Things and accessories.

Siliconch reported an operating revenue of 27.68 crore rupees in FY24, up from 19.97 crore rupees a year earlier, according to the statement.

“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 LTSCT,” L&T said.

The acquisition is likely to be completed by 15 September.

Note: $1 = 83.4780 Indian rupees

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