India, Aug. 6 -- L&T Semiconductor Technologies (LTSCT), the fabless chip design arm of L&T, is shifting its outsourced semiconductor assembly and test (OSAT) operations from overseas to India, citing the global cost competitiveness of domestic OSAT players.

The company is already working with Tata Electronics as it prepares to commence commercial OSAT operations. While chip fabrication currently remains outsourced to foundries in the US, Taiwan and Japan, LTSCT indicated it would consider manufacturing at Tata Electronics' semiconductor fab once it becomes operational in mid-2028, provided pricing is globally competitive.

The company has invested US$100 million in chip design, and expects to break even within two years, targeting US$15...