L&T Semiconductor Shifts Chip Packaging Operations to India
- L&T Semiconductor Technologies (LTSCT) is shifting its OSAT (assembly and testing) operations from overseas to India, partnering with Tata Electronics.
- Indian OSAT players currently cover approximately 50 of 500 global semiconductor package types, with capabilities expanding rapidly.
- LTSCT has invested USD 100 million in chip design (12nm to 95nm nodes) and expects break-even at USD 150-200 million revenues within two years.
- Wafer fabrication remains abroad (US, Taiwan, Japan); LTSCT will consider Tata Electronics' Sanand fab once it achieves commercial production, targeted for mid-2028.
- L&T Semiconductor Technologies (LTSCT) is shifting its OSAT (assembly and testing) operations from overseas to India, partnering with Tata Electronics.
- Indian OSAT players currently cover approximately 50 of 500 global semiconductor package types, with capabilities expanding rapidly.
- LTSCT has invested USD 100 million in chip design (12nm to 95nm nodes) and expects break-even at USD 150-200 million revenues within two years.
- Wafer fabrication remains abroad (US, Taiwan, Japan); LTSCT will consider Tata Electronics' Sanand fab once it achieves commercial production, targeted for mid-2028.
- Business Standard (04 Aug 2026): https://www.business-standard.com/industry/news/l-t-semiconductor-goes-local-with-chip-backend-shifts-osat-to-india-126080300783_1.html
- BIS Infotech (07 Aug 2026): https://www.bisinfotech.com/l-t-semiconductor-technologies-shifts-osat-operations-to-india-in-major-boost-to-local-chip-ecosystem/
L&T Semiconductor Technologies (LTSCT), the fabless semiconductor design arm of Larsen & Toubro, has announced the relocation of its outsourced semiconductor assembly and testing (OSAT) operations from overseas facilities to India. The company has initiated active engagements with domestic OSAT providers, most notably Tata Electronics, whose semiconductor assembly and testing facility in Sanand, Gujarat is preparing for commercial operations. LTSCT designs chips ranging from 12 nanometre to 95 nanometre nodes and has invested USD 100 million in chip design to date, with an average investment of USD 30 million per chip.
The strategic significance lies in the maturation of India's domestic OSAT ecosystem. LTSCT CEO Sandeep Kumar stated that Indian OSAT players currently cover approximately 50 of the 500 semiconductor package types globally, and that India's assembly and testing infrastructure has reached a stage where it can compete on cost-efficiency and technical capability with established global facilities. The company, which derives 30 per cent of its revenue from India despite the country accounting for only 10 per cent of global semiconductor demand, expects to break even within two years at revenues of USD 150-200 million.
The dependency frame is notable: while LTSCT is localising its backend (OSAT) operations, wafer fabrication remains abroad at facilities in the United States, Taiwan and Japan. Kumar indicated the company would consider fabricating chips at Tata Electronics' planned fab - expected to be operational by mid-2028 - only if pricing is globally competitive. This conditional stance highlights that India's semiconductor localisation is progressing in stages: backend capabilities are mature enough to attract domestic chip designers, while front-end fabrication remains dependent on international foundries and the viability of domestic alternatives.
The test to watch is whether Tata Electronics' Sanand fab achieves commercial production by mid-2028 as planned, and whether LTSCT's shift of OSAT operations triggers a broader migration of other fabless companies to India's domestic packaging ecosystem. Under the proposed Semicon 2.0 framework, large companies are now eligible for chip design incentives for the first time, which could further accelerate localisation across the value chain.
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