Fabless chip firm L&T Semiconductor Technologies expects manufacturing of semiconductor merchandise designed by it to begin within the subsequent two years, a high firm official mentioned.
Whereas chatting with PTI, L&T Semiconductor Applied sciences CEO Sandeep Kumar mentioned the corporate will arrange its chip manufacturing crops after reaching a threshold income within the vary of $50 million to $1 billion for various semiconductor applied sciences.
The corporate is constructing groups to deal with round 15 completely different merchandise in parallel, and it’s already midway on that journey, he added.
“We could have the complete power prepared within the subsequent six months. By the tip of this 12 months, we will deal with 15 parallel product designs. Since now we have half the crew, roughly six product designs have already began. These designs will launch someday by the tip of subsequent 12 months, and manufacturing will begin in two years from in the present day,” Mr. Kumar mentioned.
He mentioned the corporate is of the view that beginning as a fabless chip agency is essential for India to cut back dependency on overseas corporations.
“First, we have to construct merchandise. We have to work out the best way to promote these merchandise which are of true strategic worth. Tomorrow, you construct a manufacturing facility, and it’s constructing any individual else’s merchandise from the skin. You possibly can all the time shift to a different fab, and that foundry can go stomach up. There’s all the time that threat,” Mr. Kumar mentioned.
He additionally talked a couple of hypothetical state of affairs the place if a developed nation decides to cease sharing expertise with India then in that case, your complete expertise sector within the home market might come to a halt.
Mr. Kumar mentioned if an indigenous firm makes a product, then it’s assured that the product is strategically retained in India.
“It can’t be managed or stopped by another nation. It doesn’t suggest that what others are doing is unsuitable. Within the chip trade, there’s a foundry enterprise the place you construct a manufacturing facility, and you discover different clients who wish to use that manufacturing facility. They’ll have their very own challenges. I am positive they will determine it out,” Mr. Kumar mentioned.
Tata Electronics, Micron, CG Energy and Kaynes Applied sciences are organising semiconductor models in India with a cumulative funding of ₹1.52 lakh crore.
Tata Electronics is the one firm organising two models, together with the nation’s first large wafer fabrication plant.
Apart from, Tower Semiconductor is teaming with Adani Group to arrange one other chip manufacturing unit with a proposed funding of ₹83,000 crore.
HCL and Foxconn have additionally submitted a proposal for organising a semiconductor plant.
Mr. Kumar mentioned that to construct on semiconductor merchandise, L&T is in talks with a number of main corporations within the area and has not too long ago signed a pact with IBM as properly.
L&T Semiconductor’s take care of IBM contains engagement in a analysis and growth collaboration to design superior processors.
The scope of this work might embody processor design for edge units and hybrid cloud techniques, in addition to for areas like mobility, industrial, power, and servers.
Mr. Kumar mentioned the corporate will work on chips within the vary of nanometer (nm) to 130 nanometer nodes and even smaller nodes of two to five nm that can be utilized in cell phones, electrical automobiles, industrial electronics and so on.
“It is going to initially get the chips produced at a semiconductor foundry exterior and discover its manufacturing at an Indian unit if the fee is affordable,” he added.
Mr. Kumar mentioned the corporate will take a look at organising its personal semiconductor models primarily based on completely different applied sciences after reaching a minimal threshold income within the respective segments.
“A 28-nanometer fab and above is roughly $10 billion. With the intention to flip that right into a worthwhile enterprise, you could have gross sales of roughly a billion {dollars} per 12 months from that fab. We have to obtain that form of gross sales outlook with excessive confidence earlier than we resolve to embark on organising a silicon fab at 28 nanometers,” he added.
Mr. Kumar mentioned a 2-5 nm fab will want a $100 billion funding.
“You have to have a gross sales determine of $10 billion so as to make it worthwhile. We’re not within the enterprise of carrying loss. A minimum of from a planning standpoint, we should be at that (income) level,” he famous.
He mentioned there are two different processes often called silicon carbide and gallium nitride for semiconductors. Silicon carbide is getting used for energy power, and EVs and gallium nitride chips are getting used for wi-fi merchandise and energy.
“The price of organising these fabs is someplace between half a billion and a billion {dollars}. Meaning these can want about $50 million to $100 million in gross sales a 12 months so as to justify that. We’re all choices, however we predict these two will happen earlier, 28 nanometers will happen later, and the 5 nanometers will happen even later,” Mr. Kumar added.
Printed – September 29, 2024 02:40 pm IST
