DBT Bureau
Bengaluru, 14 July 2024
IT firms have started betting big on the semiconductor space as demand for AI-powered chips rises across the world.
Joining the race, engineering services firm Cyient has announced the formation of a separate subsidiary focussing on the semiconductor business.
“We are happy to announce this strategic initiative that enhances our capabilities in Application Specific Integrated Circuit (ASIC) turnkey design and manufacturing. As the global semiconductor market is expected to hit a trillion dollars by 2030 and the Indian Electronics and Semiconductor Association (IESA) forecasting the industry’s growth to $100 billion by 2030, we are well-positioned to capitalize on the vast opportunities for growth and influence in this evolving market,” said Krishna Bodanapu, Vice Chairman and Managing Director of Cyient Limited.
He said that Cyient’s credentials in the semiconductor electronics sector through Cyient DET and Cyient DLM have enabled the company to set up this wholly-owned subsidiary.
Currently, the engineering services firm, Cyient has a portfolio of over 600 IPs covering a range of functions.
“The subsidiary will strengthen the position in the industry by delivering world-class specialized turnkey ASIC design and chips sales under focused and capable leadership, adapting to market cycles, and more effectively addressing this industry’s technology and capital requirements,” it said.
Earlier this month, the world’s biggest IT firm Accenture announced that it would acquire Bengaluru-based semiconductor design services provider, Excelmax Technologies for an undisclosed sum. Excelmax provides custom silicon solutions used in consumer devices, data centres, artificial intelligence (AI), and computational platforms that enable edge AI deployments, to clients in the automotive, telecommunications, and high-tech industries.
Among Indian IT services firms, Infosys acquired a semiconductor firm- InSemi for $35 million in January this year.
During the pandemic, the world witnessed a severe shortage of semiconductors on the back of a rapid surge in digital services. Currently, many nations including the US and India are ramping up their semiconductor manufacturing facilities in order to be self-reliant in this strategic space.
