Cyient Ltd on Friday said it has opened its new wholly-owned unit dedicated to the semiconductor business, targeting a strategic initiative to strengthen its hand in this segment amid global competitors. The focused initiative is on application-specific integrated circuit (ASIC) turnkey design and manufacturing and will function on a completely fabless model.
Krishna Bodanapu, vice chairman and managing director, Cyient Ltd, said that the semiconductor industry holds massive potential and is expected to become a trillion-dollar market by 2030. “We are excited about augmenting our existing capabilities in ASIC design and manufacturing. With such a promising outlook for the global semiconductor market, and the recent forecast from the Indian Electronics and Semiconductor Association (IESA), which envisions growth of the industry to $100 billion by 2030, Cyient is poised to capture large opportunities for growth ahead,” said Bodanapu.
This whole subsidiary will align with India’s ambitious programs for furthering its semiconductor ecosystem. The country’s government has been approving substantial investments in semiconductor plants, alongside a Rs 76,000 crore incentive scheme launched in December to attract global players. The scheme has already borne fruit, with Micron Technology of the US announcing it is to establish an OSAT (outsourced semiconductor assembly and test) operations center in Gujarat with a total investment of $2.75 billion.
Besides, Cyient’s new venture would cash in on India’s geopolitical push for making semiconductors at home and which are vital for the defense, automotive, and telecom sectors. Launching a semiconductor subsidiary is just the latest step Cyient has taken to diversify its portfolio and stand firm in the high-tech industry. This is only indicative of recent trends in the semiconductor industry, with the United States, Japan, and China going all out in investing in domestic chip manufacture to build their technological independence and ensure economic security.
News Desk
