Larsen & Toubro (L&T) has signed an agreement to acquire Bengaluru-based SiliConch Systems for Rs 183 crore. L&T Semiconductor Technologies, a wholly-owned subsidiary of the company has entered into a share purchase agreement on 08 July, 2024 for acquisition of 100 percent stake in SiliConch Systems. The acquisition is likely to be completed by September.

The move would add engineering skillsets and design expertise to strengthen the Group's presence in the fabless semiconductor business. The acquisition cost consists of an upfront amount of Rs 133 crore payable at closing, and a deferred amount of Rs 50 crore payable over four years, subject to closing adjustments, achievement of targets and other conditions. The semiconductor ecosystem consists of three parts - designing, manufacturing and testing.

SiliConch specialises in the development and design of semiconductor Intellectual Property (IP) and Integrated Circuits (IC). The end customers of IPs delivered by SiliConch are original equipment manufacturers (OEMs) and fabless IC companies, primarily in the US, who provide power management systems for smartphones and automotive companies.