Larsen and Toubro acquires Fujitsu’s power modules business for expansion

MUMBAI: Ship-to-software conglomerate Larsen & Toubro is set to acquire the power modules business of Fujitsu General for 2 billion yen, or about $14 million, as part of its expansion strategy.

The business will be bought by L&T’s two-year-old 100% semiconductor arm. Separately, one of L&T Semiconductor Technologies’ manufacturing contractors, Kaynes Semicon (KS), will acquire the production facilities related to the power modules business from Fujitsu.KS is a wholly owned subsidiary of Mumbai-listed Kaynes Technology India. This company, headquartered in Mysore, was founded by Ramesh Kunhikannan, an electrical engineer, in 1989.

He and his wife own 58% of Kaynes, which has a market cap of Rs 36,225 crore.The Japanese major said it will record gains on the transfer of the power modules business in the first quarter of FY26. The decision to sell the power modules unit is part of a portfolio transformation of the company’s electronic device business, Fujitsu added. The deal is expected to be completed by June 23, pending clearance under Japan’s foreign exchange and foreign trade rules.

According to Fujitsu, it has no prior business relationship with L&T Semiconductor Technologies and KS and hence is not considered a related party.L&T Semiconductor Technologies, established in November 2023, is involved in the development and sale of semiconductor products. Kaynes specialises in assembling printed circuit boards and has eight factories in the country. It supplies to 350 clients across the world in the automotive, aerospace, and medical industries.