diff --git a/components/esp32/CMakeLists.txt b/components/esp32/CMakeLists.txt
index 371023789..0fca8aa0c 100644
--- a/components/esp32/CMakeLists.txt
+++ b/components/esp32/CMakeLists.txt
@@ -58,7 +58,8 @@ else()
 
     # Process the template file through the linker script generation mechanism, and use the output for linking the
     # final binary
-    target_linker_script(${COMPONENT_LIB} "${CMAKE_CURRENT_LIST_DIR}/ld/esp32.project.ld.in" PROCESS)
+    target_linker_script(${COMPONENT_LIB} "${CMAKE_CURRENT_LIST_DIR}/ld/esp32.project.ld.in" 
+                        PROCESS "${CMAKE_CURRENT_BINARY_DIR}/ld/esp32.project.ld")
 
     target_linker_script(${COMPONENT_LIB} "ld/esp32.peripherals.ld")
     target_link_libraries(${COMPONENT_LIB} gcc)
diff --git a/tools/cmake/ldgen.cmake b/tools/cmake/ldgen.cmake
index 9161ecd8f..b8cfaad49 100644
--- a/tools/cmake/ldgen.cmake
+++ b/tools/cmake/ldgen.cmake
@@ -27,7 +27,7 @@ endfunction()
 #
 # Passes a linker script template to the linker script generation tool for
 # processing
-function(__ldgen_process_template output_var template)
+function(__ldgen_process_template template output)
     idf_build_get_property(idf_target IDF_TARGET)
     idf_build_get_property(idf_path IDF_PATH)
 
@@ -36,11 +36,6 @@ function(__ldgen_process_template output_var template)
     file(GENERATE OUTPUT ${build_dir}/ldgen_libraries.in CONTENT $<JOIN:${ldgen_libraries},\n>)
     file(GENERATE OUTPUT ${build_dir}/ldgen_libraries INPUT ${build_dir}/ldgen_libraries.in)
 
-    get_filename_component(filename "${template}" NAME)
-
-    set(output ${CMAKE_CURRENT_BINARY_DIR}/${filename}.ld)
-    set(${output_var} ${output} PARENT_SCOPE)
-
     set_property(DIRECTORY "${CMAKE_CURRENT_SOURCE_DIR}"
         APPEND PROPERTY ADDITIONAL_MAKE_CLEAN_FILES
         "${build_dir}/ldgen_libraries.in"
diff --git a/tools/cmake/utilities.cmake b/tools/cmake/utilities.cmake
index 4e64c1620..f5f7f9693 100644
--- a/tools/cmake/utilities.cmake
+++ b/tools/cmake/utilities.cmake
@@ -131,13 +131,14 @@ endfunction()
 # and then adds -T with the filename only. This allows INCLUDE directives to be
 # used to include other linker scripts in the same directory.
 function(target_linker_script target scriptfiles)
-    cmake_parse_arguments(_ "PROCESS" "" "" ${ARGN})
+    cmake_parse_arguments(_ "" "PROCESS" "" ${ARGN})
     foreach(scriptfile ${scriptfiles})
         get_filename_component(abs_script "${scriptfile}" ABSOLUTE)
         message(STATUS "Adding linker script ${abs_script}")
 
         if(__PROCESS)
-            __ldgen_process_template(output ${abs_script})
+            get_filename_component(output "${__PROCESS}" ABSOLUTE)
+            __ldgen_process_template(${abs_script} ${output})
             set(abs_script ${output})
         endif()
 
diff --git a/tools/ldgen/ldgen.py b/tools/ldgen/ldgen.py
index 7829e4dfb..dcc0db4e0 100755
--- a/tools/ldgen/ldgen.py
+++ b/tools/ldgen/ldgen.py
@@ -19,6 +19,8 @@ import argparse
 import sys
 import tempfile
 import subprocess
+import os
+import errno
 
 from fragments import FragmentFile
 from sdkconfig import SDKConfig
@@ -111,6 +113,14 @@ def main():
         with tempfile.TemporaryFile("w+") as output:
             script_model.write(output)
             output.seek(0)
+
+            if not os.path.exists(os.path.dirname(output_path)):
+                try:
+                    os.makedirs(os.path.dirname(output_path))
+                except OSError as exc:
+                    if exc.errno != errno.EEXIST:
+                        raise
+
             with open(output_path, "w") as f:  # only create output file after generation has suceeded
                 f.write(output.read())
     except LdGenFailure as e: