Cyient to invest $100 million in semiconductor arm, plans to tap financial investors for additional funds

Look around us. As more and more products from smartphones to smart-lights and vehicles are going hi-tech, demand for semiconductors is growing at a rapid clip. To tap into this growing opportunity, Hyderabad-based engineering and technology solutions company Cyient has carved out its semiconductor business into separate subsidiary.

"As more and more chips are now being used in more and more applications, the need for specialised chips is increasing dramatically and significantly. There are a lot of companies in the world today that need custom ASICs (application-specific integrated circuit) and we can help these companies design, manufacturers, fabricate, package, test and deliver these chips," said Krishna Bodanapu, executive vice chairman and MD of Cyient.

The semiconductors market is currently valued at about $600 billion and is projected to touch $2 trillion by 2032.

The company will initially invest $100 million into the semiconductor subsidiary. Additionally, Cyient is also planning to raise funds from financial investors and family offices. Ramya Mohan, Cyient Semiconductors' CFO and head of corporate development didn't disclose the quantum of additional funds it intends to raise. She said the company was in the process of finalising bankers and hopes to close the fund raising within the first half of the current financial year.

Cyient reported a revenue of around $714 million last financial year in digital, engineering and technology.

Cyient is not competing with the Nvidias of the world, clarified Bodanapu. But it would like to help companies design and manufacture chips that go into more everyday gadgets.

Cyient has already been delivering ASIC turnkey solutions and semiconductor design services across industrial, data centre applications, automotive and medical. Cyient Semiconductors currently has around 400 engineers deployed across various locations in India and abroad.

Cyient Semiconductors will focus on developing fabless semiconductor solutions. It works closely with leading semiconductor firms, original equipment manufacturers and global partners across fabrication, OSAT (outsourced semiconductor assembly and test) and IP (intellectual property) to enable scalable silicon innovation.

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