Cyient expands semiconductor business with new subsidiary

In a strategic move to bolster its presence in the semiconductor industry, Cyient Ltd announced on Friday the establishment of a wholly-owned subsidiary dedicated to its semiconductor business.

Vice Chairman and Managing Director Krishna Bodanapu, said, "We are thrilled to announce this strategic initiative that enhances our capabilities in Application Specific Integrated Circuit (ASIC) turnkey design and manufacturing. With the global semiconductor market projected to reach a trillion dollars by 2030, and the Indian Electronics and Semiconductor Association (IESA) forecasting the industry’s growth to $100 billion by the same year, we are well-positioned to capitalize on these vast opportunities."

Bodanapu further added that Cyient’s credentials in the semiconductor electronics sector through Cyient DET and Cyient DLM enabled the company to set-up this subsidiary. 

Semiconductors, essential for sectors such as defense, automotive, and telecommunications, have gained strategic importance on the global stage. Nations including the US, Japan, and China are heavily investing in developing their domestic semiconductor capabilities.

India, aiming to strengthen its semiconductor manufacturing prowess, approved three semiconductor plant proposals in March. These projects, with an estimated investment of Rs 1.26 lakh crore, are expected to significantly boost the country's electronics manufacturing sector. This follows India's initial step in December 2021, when it approved a Rs 76,000 crore incentive scheme to attract global players to establish operations in the country.

Further detailing the progress, the first major success under this scheme was marked in June 2023 when US-based Micron announced its plan to set up an OSAT unit in Sanand, Gujarat. Of the total $2.75 billion investment in the facility, Micron will invest $825 million, with the remaining funds sourced from a combination of central and state government incentives.