October 29, 2025 : Larsen & Toubro Ltd. (L&T) is weighing the Tata playbook to explore an entry into electronics manufacturing in India, as the country’s largest engineering firm eyes diversification — from mega projects to small components.
The Mumbai-based company has held preliminary discussions with the Tamil Nadu government for 200 acres of land near Chennai — the hub of electronics manufacturing in India, ET reported on Wednesday (29 October 2025). L&T, is likely to focus on making components for devices and not the device itself — at least to begin with. The idea is to become an “integrated player with end-to-end manufacturing capabilities”.
L&T can also use the Tamil Nadu land for a semiconductor plant, sources told ET. “At the time of the discussions, semiconductor manufacturing was not on the cards,” ET quoted its sources as saying, but “these are initial plans and will eventually take a bigger shape in the future”.
L&T and the Tamil Nadu government didn’t respond to ET’s request for a comment. HT.com has not independently verified this information.
L&T’s Semiconductors Business
Given L&T’s expertise in heavy-duty engineering and manufacturing, EMS is a natural fit, especially semiconductors—systems and not just chips. That ties in well with India’s “atmanirbhar” push in electronics and semiconductors. L&T, by its own admission, imports 80% of chips used in its defence and industrial verticals.
In 2023, L&T set up a wholly owned subsidiary called L&T Semiconductor Technologies that focused on chip design for analogue applications in automotive, industrial and energy sectors.
On 13 August 2024, Mint reported that L&T Semiconductor Technologies is planning to build three semiconductor fabs in India over the next 5-10 years with a potential investment of $10-12 billion.
“The vision is to become first global company in semiconductors operating from India, headquartered here, with a footprint across Europe, Japan and India,” L&T Semiconductor CEO Sandeep Kumar had said then. “The centre of gravity for all the development and manufacturing would be in India.”
L&T Electronics Manufacturing
An analyst cited by ET backed this view, adding that L&T is not keen on getting into the smartphone space like the Tatas.
“Their focus would be on segments they can marry it existing adjacencies — for instance, aerospace,” this analyst said. “The company already has units like L&T Precision Engineering Systems which do some work in electronics, so expanding into EMS would be a natural move.”
“They could look at building IoT modules for the automotive industry or even energy meters. L&T has the connections and the big infrastructure projects as well that would make it a good fit for this segment.”
Summary:
Engineering giant Larsen & Toubro (L&T) is exploring entry into India’s electronics manufacturing sector, aiming to replicate Tata Group’s model as part of its diversification and ‘Make in India’ expansion plans.