SiliConch Systems is a semiconductor designing and manufacturing startup that was acquired by Larsen & Toubro. The company acquired a full stake in the startup for Rs 183 crore. The semiconductor subsidiary of L&T has signed a share purchase agreement with the startup to complete the transaction by 15th September. Here we are talking about L&T to acquire Semiconductor startup SiliConch Systems for Rs 183 crore.
The company has to pay the upfront amount of Rs 133 crore while closing the deal. The remaining Rs 50 crore amount will be paid during the next four years with the closing adjustments while other conditions. SiliConch Systems designs fabless semiconductors and systems on chips. The startup operates in multiple locations and has around 30 granted patents. This deal will benefit the startup and enable Larsen & Turbo to scale its operations, advance its technologies, and strengthen its position in the semiconductor market. This deal will help the company integrate its technologies and workforce and increase its working capacity.
The company plans to add IP, advance its designs, and strengthen its brand presence. The deal for acquiring this startup is a part of its overall growth strategy. The company taking over SiliConch Systems also shows the company’s dedication to fabless chip manufacturing. The company plans to expand its network after acquiring this semiconductor startup. The merging will help the company integrate technology and experts from both companies. L&T aims to increase its capacity for global customers while working with advanced chips.
The company is also working to expand its production capacity to serve global clients and develop it further to reach electric and semiconductor customers. The major source of revenue for the startup is through its SoC IPs and integrated chip designs. SiliConch reported a 38 percent increase in its operating revenue year-on-year to Rs 27.68 crore. The development came after the Indian semiconductor sector saw increased interest from investors. Earlier this week the fabless semiconductor startup also secured $5 million in its pre-series A funding round to establish a fabless chip company and earn a revenue of 70 to 100 million USD in the next two years.
Conclusion
A Fabless semiconductor manufacturing startup, SiliConch Systems, was acquired by Larsen & Turbo for Rs 183 crore. The company’s regulatory filing mentioned that the firm will complete the upfront transaction by September. The deal mentioned that this upfront amount was Rs 133 crore at the time of closing the deal. The remaining Rs 50 crore amount is payable for the next four years. This investment will enable Larsen & Turbo to scale its operations, merge its technologies, and strengthen its position in the fabless semiconductor manufacturing sector.
This acquisition will help the company to merge the startup’s technologies and workforce hence the increased working capacity. This acquisition is a part of its overall growth strategy. This acquisition will help the firm to scale its operations and strengthen its brand presence in the semiconductor market. This fresh capital will help the startup to develop innovative solutions and enhance the performance capability of the chips.
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