Cyient Sets Up A New Subsidiary To Provide Semiconductor Design Services

Tech company Cyient Ltd is setting up a new wholly-owned subsidiary (WOS) to provide semiconductor design services.

The subsidiary will focus on designing and selling specialised chips using a fabless model for analogue mixed-signal chips. In a statement, the company said the new subsidiary will allow Cyient to provide more value to its stakeholders.

It is pertinent to note that Cyient already has a presence in the semiconductor space through its subsidiaries Cyient DET and Cyient DLM. It provides IC consulting, IC development and chip production solutions like prototyping, test and qualification services, and packaging.

The new subsidiary will acquire the integrated semiconductor technology business of Cyient, the company said in an exchange filing.

“The subsidiary will strengthen its position in the industry by delivering world-class specialised turnkey Application Specific Integrated Circuits (ASIC) design and chips sales under focused and capable leadership, adapting to market cycles, and more effectively addressing this industry’s technology and capital requirements,” Cyient said in the statement. 

ASIC is an integrated circuit (IC) that’s custom-designed for a particular task or application.

Cyient chairman & MD Krishna Bodanapu said that the new subsidiary will enhance the company’s abilities in designing and manufacturing specialised chips. 

“As the global semiconductor market is expected to hit a trillion dollars by 2030 and the Indian Electronics and Semiconductor Association (IESA) forecasting the industry’s growth to $100 Bn by 2030, we are well-positioned to capitalise on the vast opportunities for growth and influence in this evolving market,” Bodanapu added. 

Cyient provides engineering solutions for a digital and autonomous future. It claims to have over  600 IPs in a diverse range of functions and technology nodes. Some of its notable clients include Airbus, Deutsche Aircraft, and SkyDive. 

The development comes at a time when the country’s semiconductor space is buzzing with activities. Amid the Centre’s focus on promoting semiconductor manufacturing in India, a number of companies have announced plans to enter the space.

Earlier this week, construction giant L&T acquired a 100% stake in semiconductor design startup SiliConch Systems for INR 183 Cr. Prior to that, IT major Accenture also acquired Bengaluru-based chip design startup Excelmax Technologies. 

Meanwhile, Zoho is also looking to enter the semiconductor space and has sought the Centre’s approval to get incentives under the PLI scheme for setting up a chip fabrication plant. 

Last year, Murugappa Group also announced its foray into semiconductor assembly and testing with an investment corpus of $791 Mn over five years in the business.

Samsung also unveiled its semiconductor R&D unit in Bengaluru earlier this year.