It’s a wrap: News this week (July 6 – July 12)

There have been multiple developments this week on the tech front. From deals of the week to IT services quarterly results, this is the list of the most important developments for a quick catch-up:

Accenture, L&T buy chip design firms

IT consultancy firm Accenture made two semiconductor acquisitions this week. Both the acquisitions — Cientra and Excelmax Technologies — are expected to augment and expand the Dublin-headquartered firm’s silicon design and engineering capabilities

US-based Cientra offers expertise in semiconductor engineering, development and testing, while Bengaluru firm Excelmax expertise in semiconductor engineering, development and testing. Through the deals, 530 employees of the Cientra and approximately 450 professionals from Excelmax will be joining Accenture’s Advanced Technology Centers in India. 

Engineering and infrastructure conglomerate L&T announced on Tuesday that it will be acquiring Bengaluru-based fabless semiconductor design company SiliConch Systems. Under the agreement, L&T’s wholly owned subsidiary L&T Semiconductor Technologies will be buying a 100% stake in the startup for ₹183 crore. It will comprise an upfront payment of ₹133 crore and the remaining ₹50 crore payable over four years. 

Gujarat govt partners with Intel, IBM

The Gujarat government, on Tuesday, signed an agreement with Intel for an artificial intelligence (AI) readiness initiative. Under the partnership, students, professionals, and other interested citizens will be offered access to emerging technologies, skills, and toolsets through Intel’s platform. 

Before that, on July 6, the state government signed a memorandum of understanding (MoU) with IBM to establish and promote an AI Cluster. It will be based on IBM’s suite of generative AI solutions called watsonx to be leveraged by financial institutions in Gujarat International Finance Tec (GIFT) City.

Cyient launches semiconductor 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."

TCS, HCLTech announce results

Tata Consultancy Services (TCS) reported a rise in net profit for the first quarter of the financial year (Q1 FY25) that ended in June 2024, owing to the execution of large deals secured in previous quarters. TCS’ net profit rose 8.7% to ₹12,040 crore from ₹11,074 crore in the year-ago period but fell 3.2% compared to the March quarter, according to the IT services firm's financial results released on July 11.

HCLTech has reported a revenue of ₹28,057 Crores down by 1.6% on a quarterly basis, for the April to June period. The company's net income stood at ₹4,257 Crores, up by  6.8% from the last quarter and 20.4% on a year-on-year basis.

Vertical-wise, Telecom, media and publishing sector was the biggest gainer in terms of year-on-year growth of over 69%. Manufacturing, technology and engineering, and retail verticals grew as well. The financial services vertical degrew by 1.3% on the back of HCLTech’s divestiture from the joint venture with investment services and management firm State Street International Holdings. In April, the IT services company’s step-down wholly-owned subsidiary HCL Investments UK entered into a pact to divest its entire 49% holding in their JV with the US company.