Cyient's Bold Move: USD 100 Million Boost for New Semiconductor Venture

Cyient invests USD 100 million in its new semiconductor business and seeks additional capital from external investors. The focus is on developing customized silicon chip solutions and intellectual property creation for various industries. This strategy positions Cyient's subsidiary for future growth and a potential market listing.

Domestic technology firm Cyient has announced a significant investment of USD 100 million into its newly established semiconductor division, according to top company officials on Tuesday.

Hyderabad-based Cyient is planning to attract capital from external investors by September, and the process of appointing merchant bankers is underway to facilitate this effort. While the targeted amount remains unspecified, Executive Vice Chairman and Managing Director Krishna Bodanapu stated that the funds will bolster research and development operations. The strategic focus of the business is on providing customized silicon chip solutions across global and domestic sectors, including electric vehicles and smart meters for utilities.

The newly created subsidiary aims to generate intellectual property, leveraging geopolitical developments as a positive factor. With 40 customized chips already deployed and a new structure established to capitalize on growth opportunities, Cyient emphasizes talent over quantity in workforce planning. The parent company plans to potentially list the semiconductor arm on the stock market, seeking capital from financial investors to expand the business.

(With inputs from agencies.)