Larsen and Toubro (L&T), a major construction and engineering company, has acquired the power module design assets of Japanese firm Fujitsu General Electronics Limited (FGEL) through its wholly-owned subsidiary, L&T Semiconductor Technologies Ltd (LTSCT). The strategic acquisition includes FGEL’s R&D equipment, design patents, and intellectual properties related to power module technologies. This move is expected to accelerate LTSCT’s foray into power electronics design and development, expanding its product portfolio in industrial, energy, and automotive applications.
The acquisition is part of India’s push to build a self-reliant and globally competitive semiconductor ecosystem, under the India Semiconductor Mission (ISM) launched in 2021 with an outlay of Rs 76,000 crore. The government is offering financial incentives and policy support to promote semiconductor fabrication, design, packaging, display manufacturing, and compound semiconductor projects. Several semiconductor units have already been approved across states, with cumulative investments of around Rs 1.6 lakh crore.
According to Sandeep Kumar, CEO of LTSCT, the acquisition is a crucial step in the company’s growth journey and enhances India’s presence in the global semiconductor ecosystem. It strengthens LTSCT’s global intellectual property portfolio, enhances its design capabilities, and reinforces its commitment to delivering world-class semiconductor solutions globally. Tadashi Hasegawa, Director and COO of Fujitsu General Limited, expressed confidence that the transfer will ensure the continued development and expansion of cutting-edge power module technologies, benefiting global customers and driving industry-wide advancements.
The acquisition is seen as a significant step towards achieving the government’s goal of making India a major player in the global semiconductor industry. With the India Semiconductor Mission, the government aims to promote the development of a comprehensive semiconductor ecosystem, including design, fabrication, and packaging. The acquisition by L&T is expected to contribute to this effort, enhancing India’s capabilities in power electronics design and development. As the semiconductor industry continues to grow and evolve, India’s efforts to build a self-reliant ecosystem are likely to have a significant impact on the global market.