Domestic technology firm Cyient has launched a new subsidiary—Cyient Semiconductors—to focus on turnkey semiconductor solutions.
The company also announced the appointment of Suman Narayan as CEO of the new subsidiary.
The company’s board has approved an investment of $100 million in the newly formed entity, with the potential to raise additional funds from external sources, said Krishna Bodanapu, executive vice chairman and managing director at Cyient.
Cyient, which has an established presence in electronics manufacturing and semiconductor design, clarified that the new subsidiary will not engage in semiconductor chip manufacturing.
Currently, India is building its manufacturing ecosystem for semiconductors to reduce dependence on other nations to import the critical electronics components.
“Globally, the semiconductor manufacturing ecosystem is established such that there are very few integrated semiconductor manufacturers where they design and produce the chips. Usually, design and production are done by separate companies, and we will continue to focus on design, plus the turnkey business,” Bodanapu said.
Intel is one of the few companies globally that integrates both design and manufacturing in-house.
Cyient’s Application-Specific Integrated Circuit (ASIC) turnkey solutions provide end-to-end semiconductor services—from chip design to manufacturing coordination, packaging, and final delivery to clients.
According to company data, the global semiconductor market, currently valued at $600 billion, is projected to grow to $2 trillion by 2032. The new subsidiary aims to tap into this surge by focusing on fabless semiconductor solutions, targeting the increasing demand for specialised design expertise.
“Demand for application-specific chips is growing in industrial automation and consumer-facing industries,” Bodanapu said, adding that smart metering service providers, IoT, and smart cars are among the key segments Cyient Semiconductors will serve.
The turnkey business model, Bodanapu explained, will allow Cyient to widen its client base while also strengthening its intellectual property portfolio in semiconductor design.
“With our deep domain expertise, we will continue to empower global and domestic clients with high-value solutions. We firmly believe that the new semiconductor subsidiary will drive next-generation innovations meeting the requirements of our customers,” Narayan said.
He added that the immediate focus would be on scaling up the turnkey solutions business, including investing in talent to carry out extensive research to design relevant in-demand chips. He did not rule out the possibility of an IPO in the future, but said it is not part of the near-to-mid-term plans for now.
