Hyderabad-based engineering and technology company Cyient has carved out its semiconductor business into a dedicated subsidiary, Cyient Semiconductors, as part of its strategic push into the high-growth chip market.
“As chips become integral to more applications, the demand for specialized, custom ASICs (Application-Specific Integrated Circuits) is rising dramatically,” said Krishna Bodanapu, Executive Vice Chairman and Managing Director of Cyient. “We are well-positioned to support companies in designing, fabricating, packaging, testing, and delivering these custom chips,” added Bodanapu.
Tapping into a Trillion-Dollar Opportunity
The global semiconductor market, currently valued at approximately $600 billion, is projected to reach $2 trillion by 2032. Recognizing this opportunity, Cyient plans to initially invest $100 million into its new semiconductor arm.
In addition, the company is actively exploring funding from financial investors and family offices to further scale operations. While the exact amount remains undisclosed, Ramya Mohan, CFO and Head of Corporate Development at Cyient Semiconductors, said the company is in the process of appointing bankers and aims to complete the fundraising in the first half of the current financial year.
Focusing on Everyday Tech and Turnkey Chip Solutions
Unlike major players such as Nvidia, Cyient isn’t targeting high-end GPUs or AI chips. Instead, it aims to help businesses build application-specific chips for everyday devices and industrial applications.
“Cyient is not competing with the Nvidias of the world,” Bodanapu clarified. “Our strength lies in enabling the design and manufacture of chips used in common, high-volume products,” he added.
Cyient already offers turnkey ASIC solutions and design services for sectors like industrial automation, data centers, automotive, and medical devices.
Building a Fabless, Scalable Semiconductor Ecosystem
Cyient Semiconductors is focused on fabless semiconductor development, working closely with original equipment manufacturers (OEMs), leading chip companies, and global partners across:
- Fabrication
- OSAT (Outsourced Semiconductor Assembly and Testing)
- IP (Intellectual Property)
Solid Foundation and Strong Momentum
In 2024, Cyient reported revenues of approximately $714 million from its digital, engineering, and technology services. As reported by theweek.in, with the launch of its semiconductor subsidiary, the company aims to deepen its presence in one of the world’s most dynamic and strategically critical industries.
