L&T Semiconductor Technologies is expected to outline a partner-led expansion into cellular IoT modules at CES, positioning India as a future manufacturing base and sourcing option in a market long dominated by imported solutions.
Speaking ahead of the announcements, Sandip Kumar, chief executive of L&T Semiconductor Technologies, said the company's cellular IoT initiative is being built around technology from a leading US semiconductor supplier, with L&T focusing on module-level design, system software, certification, and supply-chain execution rather than baseband silicon development.
The approach reflects a broader strategy among emerging fabless players to accelerate market entry by leveraging established silicon platforms, while progressively increasing proprietary intellectual property at the system and integration layers.
"At this stage, a significant portion of the value still sits with the underlying chipset," Kumar said. He added that L&T's proprietary IP currently accounts for roughly 15% of the module value, with plans to raise that share to 30–50% over time as the company develops more in-house RF, system, and integration capabilities.
Certification driven by commercial economics
While the cellular modules are being positioned as pre-certified, Kumar emphasized that full carrier certification in Europe and North America will be pursued selectively based on confirmed customer demand.
Carrier approvals can be costly and are typically justified only once deployment volumes are clear, he said. From a timeline perspective, certification cycles of roughly three months can usually be absorbed within standard product development schedules, making certification more of a commercial decision than a technical bottleneck.
In contrast, many Asian and African markets do not require carrier certification, enabling faster initial deployments.
Near-term traction in energy, longer ramp in automotive
Early commercial traction is emerging most clearly in India's energy sector, where sampling is underway with smart meter and energy infrastructure customers, according to Kumar.
Typical deployments in this segment range from one to five million units per customer per year, with total volumes potentially reaching around five million units in the first year of production. Average selling prices in the energy segment are expected to be about $2.50 per module.
Engagements are also underway with automotive customers in Japan, Europe, and the US, though Kumar cautioned that the revenue impact will be longer term. Automotive programs typically involve design-to-production cycles of two to three years, pushing meaningful volume shipments to 2028 or later.
While unit volumes in automotive may be comparable to energy deployments, pricing is substantially higher. Depending on functionality, automotive modules could command prices ranging from $30 to $150, significantly increasing revenue potential once programs enter production.
The move also has implications for supply-chain diversification in price-sensitive markets. In India's energy segment, Kumar acknowledged that Chinese suppliers remain the dominant reference point for pricing, often serving as a benchmark rather than an incumbent being directly displaced.
The availability of an India-based alternative, however, gives device makers additional leverage in commercial negotiations and introduces a non-Chinese option in a segment historically dominated by imports. Over time, this could reshape sourcing strategies in markets where cost sensitivity, regulatory scrutiny, and supply continuity increasingly intersect.
Manufacturing roadmap to India
L&T expects manufacturing of both IoT and automotive modules to be anchored in India at scale, Kumar said, though early prototyping continues to rely on overseas capabilities for high-density, multilayer PCB fabrication that is not yet widely available domestically.
These constraints are expected to ease over the next one to two years as local manufacturing capabilities expand. By the time automotive programs reach volume production, manufacturing is expected to be fully India-based.
From the perspective of global OEMs, however, India-based manufacturing is not yet a decisive factor, particularly in automotive markets, Kumar noted. Cost structure, supply continuity, and qualification history remain higher priorities, while local manufacturing offers clearer benefits in India-focused deployments through tax structures and government incentives.
Accelerating power device development through simulation
In parallel with the cellular module push, L&T is expected to announce a multi-year collaboration with a global engineering simulation software provider aimed at accelerating power semiconductor development.
The effort focuses on intelligent power modules used in automotive electrification, industrial automation, and energy infrastructure. These devices present complex challenges involving thermal behavior, electrical performance, materials science, and long-term reliability.
Traditionally, power module development requires multiple physical design and validation cycles, extending timelines to nine to 18 months. By using advanced simulation models that combine electro-mechanical and material-level analysis, L&T expects to compress development into a single design cycle of three to six months, Kumar said.
The approach is expected to improve both time to market and design confidence across automotive and industrial applications.
IP ownership over derivatives
L&T is also expected to outline an updated IP collaboration framework that allows the company to retain ownership of modifications and derivative intellectual property created through joint development with partners.
While the framework does not grant exclusive access to partner technologies, Kumar said it differs from conventional agreements by enabling L&T to own and reuse improvements internally, strengthening its long-term semiconductor portfolio and reducing dependence on external partners.
Together, the CES announcements underscore a measured, execution-focused strategy: entering markets through partnerships, building near-term volume in India, and positioning for higher-margin global opportunities as capabilities mature.
For India's fabless semiconductor ambitions, the moves highlight both progress and constraint, advancing from services into product deployment while remaining tightly integrated with the global semiconductor ecosystem.
Article edited by Jack Wu
