Larsen & Toubro (L&T), India’s largest engineering and infrastructure conglomerate, is reportedly exploring a strategic shift toward electronics manufacturing, taking inspiration from the Tata Group’s recent expansion into the sector. The move could mark a major transformation for the Mumbai-based company as it looks to diversify from large infrastructure projects to producing advanced electronic components.

Reports suggest that L&T has begun early talks with the Tamil Nadu government to acquire around 200 acres of land near Chennai, a key hub for electronics production in India. Initially, the company plans to focus on manufacturing components used in devices rather than building entire products. The long-term goal is to become a fully integrated manufacturer with complete end-to-end capabilities, covering design, production, and assembly.

Sources cited by The Economic Times said that while semiconductor production was not part of the original discussion, L&T could later use the same site for a semiconductor facility. These plans are still in their early stages, but insiders believe the company intends to expand its ambitions as groundwork progresses.

Expanding into Semiconductor Manufacturing

L&T’s growing focus on electronics manufacturing aligns with India’s national effort to build self-reliance in semiconductors and high-tech electronics under the Atmanirbhar Bharat initiative. With its strong foundation in precision engineering, defence, and heavy manufacturing, the company already holds a natural advantage in semiconductor-related systems and components. At present, L&T imports around 80 percent of the chips used in its defence and industrial divisions.

To reduce this reliance, the company created a wholly owned subsidiary called L&T Semiconductor Technologies in 2023. The unit focuses on designing analogue chips for automotive, industrial, and energy applications. In 2024, reports revealed that L&T planned to set up three semiconductor fabrication plants in India over the next five to ten years with an investment estimated between 10 and 12 billion dollars.

“The vision is to become the first global semiconductor company operating from India, headquartered here, with a footprint across Europe, Japan, and India,” said Sandeep Kumar, CEO of L&T Semiconductor Technologies. “The centre of gravity for all the development and manufacturing would be in India.”

Electronics Manufacturing Strategy

Industry analysts believe L&T’s approach to electronics manufacturing will differ from that of the Tata Group. Unlike the Tatas, who are venturing deep into smartphone production, L&T is expected to focus on specialized, high-value areas that build on its existing expertise in engineering and infrastructure.

“Their focus would be on areas that complement their core strengths, such as aerospace,” an analyst told The Economic Times. “L&T already operates precision engineering units that work on electronic systems, so expanding into EMS would be a natural step.”

Potential areas of focus could include Internet of Things (IoT) modules for the automotive sector, smart energy meters, and components for industrial automation. Analysts say that L&T’s extensive experience in infrastructure and defence, combined with its scale and resources, positions it well to become a significant player in India’s expanding electronics manufacturing ecosystem.

If these plans take shape, L&T could soon emerge as one of India’s key homegrown leaders in advanced electronics and semiconductor manufacturing, strengthening both the company’s portfolio and the nation’s drive toward technological self-sufficiency.