Larsen and Toubro (L&T) revealed that it would be investing ₹830 crore ($99.69 billion) to establish a wholly-owned company for the design and ownership of fabless semiconductor chips. R Shankar Raman, the company’s Chief Financial Officer, made the news about this semiconductor venture during the earnings call for the second quarter.

According to Raman, the design of industrial and automotive chips will be the main focus. The corporation probably has a couple of design centres in India and a research and development centre in the United States. L&T intends to concentrate solely on chip design, rather than production, and will leverage India’s “talent pool of chip designing.”

Notably, Union Minister for Electronics and Information Technology Ashwini Vaishnaw stated this week at the Hindustan Times Leadership Summit that India is poised to become the design and manufacturing powerhouse for semiconductors within the next five years. He declared that 80,000 people would receive instruction in semiconductor-related skills. Furthermore, according to Vaishnaw, the value of the global semiconductor market would be more than double to over a trillion dollars in the next six to seven years.

Indeed, L&T, the engineering and construction behemoth, recorded a 19% growth in its operational revenue to ₹51,024 crore during the second quarter of business. Additionally, the company’s net profit increased to ₹3,222 crore, up 45% from ₹2,228 crore during the same time last year. Along with PR Ramesh, Ajay Tyagi has also been named an independent director of the firm for five years, beginning on October 31.

Also Read | L&T’s power arm gets significant order from West Bengal Power Development Corporation

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