L&T Semiconductor Technologies to Acquire SiliConch Systems for Rs 133 Crores
New Delhi [India], July 9, 2024: L&T Semiconductor Technologies Limited, a wholly owned technology arm of Larsen and Turbo, announced on Tuesday that it will acquire SiliConch Systems Private Limited.
The company informed the exchanges that L&T Semiconductor Technologies Limited has entered into a Share Purchase Agreement on July 8, 2024, for the acquisition of 100 per cent stake in SiliConch Systems Private Limited. The acquisition is expected to be completed by September 15, 2024.
L&T Semiconductor Technologies stated that the acquisition will add intellectual property, engineering skillsets, and design expertise to strengthen the Group’s presence in the fabless semiconductor business, aligning with the overall growth strategy of LTSCT.
For the acquisition, L&T will pay Rs 133 crores for 100 per cent of the company’s equity. An additional deferred amount of Rs 50 crores will be payable over four years, subject to closing adjustments and achievement of certain targets and other conditions.
Bengaluru-based SiliConch Systems specializes in transforming pre-silicon products with a focus on delivering mixed-signal solutions in power management and high-speed input/output (I/O) applications. The company is a proactive contributor to the USB Implementers’ Forum (USB-IF) standards, ensuring that its products adhere to the latest industry specifications and innovations.
One of SiliConch’s notable offerings is cutting-edge solutions for the USB Type-C ecosystem. USB Type-C is a reversible connector that supports various protocols and delivers power, data, and video signals through a single cable. The company is currently offering the industry’s first Multi-port USB Type-C Power Delivery IP solution to SoC vendors.
The end customers of IPs delivered by SiliConch are OEMs and/or fabless IC companies, primarily in the U.S., who provide power management systems for smartphones, PCs, automotive, IoT, and accessories. SiliConch, with 30 granted patents across geographies, generates revenue primarily as non-recurring engineering (NRE) revenue and license fees. In FY 2023-24, the company’s turnover stood at Rs 27.68 crores, while the turnover in FY 2021-22 and FY 2022-23 was Rs 11.02 crores and Rs 19.97 crores respectively.
