BAJAJ BROKING
L&T Semiconductor Technologies, a unit of Larsen & Toubro, will secure $150 million in contracts with six automobile firms by September. The company, focusing on automotive chip design, anticipates $1 billion in annual revenue within seven years.
L&T Semiconductor Technologies, a newly established chip design unit under India's leading infrastructure firm Larsen & Toubro (L&T), is set to sign contracts worth $150 million annually with six prominent automobile companies by the end of September 2024.
This marks a significant milestone for the company, which was launched in November 2023 with a $100 million investment from its parent firm. As a result, L&T shares price will remain in focus today.
The company, led by CEO Sandeep Kumar, has strategically focused its efforts on the automotive sector. Kumar highlighted the long-term potential of the automotive industry, noting that once a company is integrated into the automotive supply chain, the business tends to last for at least a decade.
L&T Semiconductor is expected to sign contracts with three Indian automobile manufacturers within two weeks and finalise agreements with three European automotive firms by the end of September. The names of these clients remain undisclosed.
L&T Semiconductor's entry into the automotive chip design market positions it against established global players like Qualcomm and NXP Semiconductors. The company specialises in designing chips for various car functions, including window operations, air conditioning, and power delivery systems.
Unlike its competitors, L&T Semiconductor does not currently manufacture the chips it designs but has long-term plans to establish its manufacturing facility.
Kumar revealed that the company aims to build a semiconductor fabrication facility once it has a clear path to achieving $1 billion in annual revenue. He projects that L&T Semiconductor could reach this revenue milestone within the next seven years, contingent upon a robust product pipeline and a secure customer base.
On Tuesday, the parent company L&T’s share price closed at ₹3,551.00, reflecting a modest decline of 0.59%. However, the stock has given a decent return of 33.50% over the past 12 months. Investors will be keenly monitoring L&T's share price movement to assess the impact of the latest announcement.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For All Disclaimers Click Here: https://bit.ly/3Tcsfuc
Share this article:
Rikhav Securities IPO- Key Objective & Deep Analysis
15 Jan, 2025 | 5 Min. read
Gold Rate Today | 15 January 2025 | Gold Price in India
15 Jan, 2025 | 40 Min. read
Delhi Court Discharges JSW Steel in Corruption Case; HC Clears Monnet Takeover
15 Jan, 2025 | 2 Min. read
Govt Plans 5-6% Hike in Highway Budget for FY26 After FY25 Slump
15 Jan, 2025 | 2 Min. read
Cipla’s Tax Demand Reduced to ₹559.18 Crores After Revision
15 Jan, 2025 | 2 Min. read
IRFC Emerges L1 Bidder to Finance ₹3,167 Crore for Banhardih Coal Block
15 Jan, 2025 | 2 Min. read
HCL Tech expands partnership with Microsoft to transform contact centres
14 Jan, 2025 | 2 Min. read
BEL secures new orders worth Rs 561 crore, boosting FY25 order book
14 Jan, 2025 | 2 Min. read
ITI Ltd secures Rs 64 crore contracts for Wi-Fi and CCTV systems
14 Jan, 2025 | 2 Min. read
JSW Energy secures LoI for 3.6 GW KSK Mahanadi power plant
14 Jan, 2025 | 2 Min. read
Biocon Biologics’ Johor Bahru Facility Receives FDA VAI Classification
13 Jan, 2025 | 2 Min. read
Interarch Secures ₹221 Crore Projects in Semiconductors & Energy Storage
13 Jan, 2025 | 2 Min. read
RBI Launches ULI: Transforming Loan Access
August 27, 2024 | 4 Min. read
Textile Sector in India
September 20, 2024 | 5 Min. read
List of IPOs with DRHPs Filed
November 30, 2023 | 3 Min. read
Aditya Birla Group
September 28, 2023 | 10 Min. read
Bajaj Housing Finance Ltd IPO: Things Smart Investors Need to Know
September 05, 2024 | 4 Min. read
Budget Stock Ideas 2024-2025 | Stocks to Buy Today
July 24, 2024 | 4 Min. read
IPO Eligibility Criteria : Full Details
March 15, 2024 | 6 Min. read
What Is the Lock-In Period in IPOs?
October 18, 2023 | 6 Min. read
Godfrey Phillips Announces 2:1 Bonus Shares
September 16, 2024 | 7 Min. read
Jindal Group- A Comprehensive Analysis
September 27, 2024 | 7 Min. read
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading