L&T Semiconductor Technologies, a fabless chip company, is set to begin manufacturing its own semiconductor products by 2026, according to CEO Sandeep Kumar. The company is currently in the process of building teams to manage the design of 15 different semiconductor products and is already halfway through this initiative. Kumar stated that full capacity for product design will be reached within the next six months, with designs rolling out by the end of 2024.

L&T plans to establish its own chip manufacturing facilities once it achieves a revenue threshold between $50 million and $1 billion across various semiconductor technologies. As part of its strategy, L&T aims to reduce India’s reliance on foreign semiconductor manufacturers, highlighting the risks of dependence on external suppliers. Kumar emphasized that self-sufficiency in semiconductor production would enhance India’s strategic position in the global market.

The company has initiated strategic partnerships, including a recent collaboration with IBM for the development of advanced processors intended for applications in mobility, industrial electronics, and cloud systems. Initially, these chips will be produced at foundries outside India, though Kumar indicated that domestic production may be considered if costs are viable.

Kumar noted that setting up a 28-nanometer fab requires significant investment, approximately $10 billion, and that achieving sales of about $1 billion annually is essential for profitability. For cutting-edge chips at 2-5 nanometer nodes, the estimated cost rises to around $100 billion, with a sales target of $10 billion.

In parallel, initiatives to bolster semiconductor education and workforce development in India are underway. Lam Research recently signed a memorandum of understanding with the India Semiconductor Mission (ISM) and the Indian Institute of Science (IISc) to create a virtual nanofabrication environment for training future semiconductor engineers. This program aims to educate up to 60,000 engineers over ten years, supported by nearly $29 million in software donations from Lam Research.

Cadence Design Systems is also actively involved in workforce development through its ‘Chips to Startup’ program, providing electronic design automation (EDA) tools to universities and collaborating on curriculum development with institutions like IIT Delhi and IIT Hyderabad. The goal is to train 85,000 chip design engineers by 2027.

In terms of technological advancements, Applied Materials is leveraging AI across its operations to improve efficiency and provide insights in areas such as process development, defect inspection, and logistics. Cadence is also integrating generative AI into its design tools to streamline workflows from chip design to production.

Overall, L&T Semiconductor Technologies is positioning itself to play a significant role in the burgeoning semiconductor industry in India, with a focus on innovation and self-reliance.