Cyient, a leading Indian technology firm, has committed USD 100 million to fund its newly established semiconductor division, according to a senior company official on Tuesday. Headquartered in Hyderabad, Cyient plans to seek additional external funding by September, and is in the process of appointing merchant bankers to facilitate this effort.
While the company has not specified the exact amount it aims to raise, Executive Vice Chairman and Managing Director Krishna Bodanapu mentioned that the capital will primarily be directed towards talent-intensive research and development initiatives. “The board has already approved a USD 100 million investment for this venture, and we also plan to attract further capital from external investors,” Bodanapu stated.
Cyient aims to develop custom silicon chip solutions for various industries, both in India and globally, with particular focus on sectors like electric vehicles and utility companies requiring smart meters. Bodanapu also noted that demand for these solutions is growing rapidly, and the company will prioritize creating intellectual property to drive the business’s growth.
Cyient has been active in this field for some time, having delivered 40 customized chips to clients. However, the company has now set up a fully-owned subsidiary to sharpen its focus and capitalize on emerging opportunities, said Suman Narayan, CEO of the new division.
Narayan also mentioned that all 400 employees currently involved in semiconductor projects at Cyient will be transferred to the new subsidiary. He emphasized that the company’s focus will be on hiring high-quality talent, not increasing headcount.
The subsidiary will not compete in the high-end, lower-nanometer chip market, which is dominated by companies like Nvidia, but instead will concentrate on more mature, higher-NM chips. Over 60% of the costs for this venture are related to talent, and the new investment will help ensure the company makes the right strategic decisions in talent acquisition and development.
Bodanapu also revealed that the company plans to eventually list the subsidiary on the stock market. A senior official added that the business aims to raise capital from financial investors and family offices to fuel its expansion.
Founded in 1991, Cyient (NSE: CYIENT) delivers intelligent engineering solutions to over 300 global customers, including 30% of the top 100 global innovators. Committed to social responsibility, environmental sustainability, and cultural inclusivity, Cyient strives to shape a better tomorrow with its stakeholders.
