Cyient shares rise 7% after announcing foray into semiconductors – Fortune India
Shares of Cyient rose as much as 7% in intraday trade on the BSE after the company announced its foray into semiconductors. The IT services company will set up a subsidiary to build the company’s Application Specific Integrated Circuit (ASIC) turnkey design and manufacturing capabilities.
“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 USD 100 billion by 2030, we are well positioned to capitalise on the vast opportunities for growth and influence in this evolving market,” says Krishna Bodanapu, vice chairman and managing director of Cyient.
“Cyient’s credentials in the semiconductor electronics sector through Cyient DET and Cyient DLM have enabled us to set up this subsidiary to drive a dedicated focus on turnkey ASIC design and chip sales through a fabless model for analogue mixed-signal chips,” Krishna adds.
With a revenue of ₹5,911 crore, Cyient Digital, Engineering, and Technology which is the company’s consolidated services and engineering parts business saw a growth of 16% year-on-year growth in the fiscal year that ended on March 31, 2024, reporting a YoY growth of 31.6% in normalised profits after tax at ₹689 crores.
“The growth was led by aerospace, sustainability and automotive sectors and we see communications and semiconductor business bouncing back to growth in FY25,” says Karthikeyan Natarajan, executive director and CEO of Cyient in a previously released press statement.
The company plans to deploy the subsidiary to deliver specialised turnkey ASIC design and chip sales. Several companies have fuelled India’s dream of becoming a semiconductor hub. Under the Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, the Union government in February 2024 approved the establishment of three semiconductor units. The programme with an outlay of ₹76,000 crore was notified in 2021. The country expects to roll out the first ‘Made in India’ chip by December this year.
Follow us on Facebook, X, YouTube, Instagram and WhatsApp to never miss an update from Fortune India. To buy a copy, visit Amazon.
Share the article
Your email address will not be published. Required field are marked*
Watches, buds and entrance into new category announced at Paris event
More powerful internals and all the AI you want.
Launched in March 2020, Koo gained prominence during the standoff between the Indian government and Twitter, now X, in 2021
AI assistance on Facebook, Instagram, WhatsApp and Meta.ai on the web is in the process of becoming available
Watches, buds and entrance into new category announced at Paris event
More powerful internals and all the AI you want.
Launched in March 2020, Koo gained prominence during the standoff between the Indian government and Twitter, now X, in 2021
AI assistance on Facebook, Instagram, WhatsApp and Meta.ai on the web is in the process of becoming available