Cyient Semiconductors Aims to Double Revenue by FY27 Through Focus on Power Chips and Strategic Mergers and Acquisitions

Cyient Semiconductors Sees Revenue Growth Amid Supply Chain Issues

Revenue Projections: Cyient Semiconductors is on track to double its revenue in FY27, driven by the government's push for Design Linked Incentives (DLI 2.0), power semiconductor chips, and the portfolio access gained from recent acquisitions.

Recent Acquisitions: The wholly-owned subsidiary of Cyient, a leading engineering services major, has acquired a 65% stake in Kinetic Technologies for $93 million and a 27.8% stake in Azimuth AI, a fabless custom Application-Specific Integrated Circuit (ASIC) company. These acquisitions provide access to power semiconductor technologies, edge AI applications, and a wide portfolio of over 100 IPs and 250+ products.

Funding Plans: Beyond current working capital, Cyient Semiconductors will look to raise external funds soon once it closes the Kinetic Technologies deal over the next few weeks. The subsidiary was set up with an investment of $100 million.

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Expansion Plans: The company aims to expand into power chips that will help in energy savings, driven by the country's plans for $200-billion of data centre investments from the current $70-billion. Data centres require semiconductors for various aspects, including compute chips, memory chips, and power chips.

Chip Design: Cyient Semiconductors will design 40-130 nm chips for the power chips segment used in smart meters, sensors, etc. The company has a proven track record in designing semiconductor devices for over 25 years, creating over 600 IPs and delivering close to 5-10 million chips in the last 5-6 years.

Market Opportunity: The policy tailwinds in India through India Semiconductor Mission 2.0, DLI 2.0, IndiaAI Mission, and data centre tax holiday extension till 2047, combined with the ongoing supply chain issues globally, create a perfect opportunity for the subsidiary to expand. The company is well-positioned to capture the growing demand for semiconductor chips that drive power efficiency, particularly in data centres and industrial robotics applications.