L&T Acquires Fujitsu’s Power Modules Business to Boost Semiconductor Business

In a strategic move to strengthen its foothold in the global semiconductor space, L&T acquired Fujitsu’s power module business, as reported by MSN. Larsen & Toubro is planning to buy the power modules business of Fujitsu General for $14 million as part of its growth plans. The deal will be done through L&T’s semiconductor company, which was founded two years ago. At the same time, Kaynes Semicon (KS), a partner that helps make products for L&T Semiconductor Technologies, will take over Fujitsu’s power module production facilities.

Expanding Global Reach Through Japan

This new development came as L&T bought Fujitsu’s power module unit, marking a significant milestone in the India-Japan semiconductor collaboration. The business was acquired through L&T’s subsidiary Kaynes Semicon, which is jointly promoted by Kaynes Technology and L&T. The move aligns with India’s long-term vision to increase its participation in the global semiconductor value chain.

According to the official statement, the acquisition includes Fujitsu’s power semiconductor manufacturing assets and technologies, which are used in sectors such as automotive, energy, and industrial automation. This will enable L&T to scale up its manufacturing ecosystem for high-performance power electronics that are increasingly in demand across markets.

Fujitsu said it will record a profit from selling its power modules business in the first quarter of FY26. The company explained that this sale is part of a broader plan to reshape its electronic device business. The deal is expected to close by June 23, but it still needs approval under Japan’s foreign exchange and trade rules. Fujitsu also mentioned that it has not worked with L&T Semiconductor Technologies or Kaynes Semicon (KS) before, so they are not considered related parties.

Kaynes and L&T Lead Semiconductor Strategy

The Fujitsu acquisition was carried out under L&T’s Kaynes Semiconductor, a collaborative initiative to bring in global tech know-how while boosting domestic capacity. Kaynes Semicon will take over Fujitsu’s manufacturing unit in Japan, which has been recognized for producing reliable and efficient power modules.

With this move, L&T aims to bridge the technology gap and bring advanced Japanese manufacturing standards to India. It also supports the Indian government’s ‘Make in India’ initiative, further solidifying the partnership between the two countries in a high-priority sector.

Strategic Significance of the Deal

The L&T Fujitsu semiconductor deal comes at a time when global companies are looking to diversify their semiconductor supply chains. With this acquisition, L&T gains access to a well-established facility, a skilled workforce, and cutting-edge intellectual property.

Industry experts view this acquisition as a smart step toward the localization of high-value semiconductor components. By integrating Fujitsu’s expertise, L&T is expected to fast-track its development of power module systems for applications in electric vehicles, renewable energy, and consumer electronics.

Boosting India’s Semiconductor Ambitions

India has been making significant strides in building its semiconductor ecosystem, and this acquisition adds a critical layer to the overall effort. Through this India-Japan semiconductor collaboration, L&T is not only enhancing its manufacturing strength but also bringing home world-class technology.

The timing is also important, as the demand for power-efficient chips continues to grow globally. This deal is expected to contribute meaningfully to India’s semiconductor roadmap by providing a base for advanced research, development, and production.

As L&T acquires Fujitsu, it sends a strong message of intent—India is ready to play a bigger role in the semiconductor industry. With the right mix of international collaboration, domestic capability, and strategic investment, the country is on the path to becoming a global electronics powerhouse.