9th April 2025, Cyient, has decided to take a major step in the global semiconductor market by introducing a wholly owned subsidiary that would be dedicated to chip designing and manufacturing. The semiconductor market is gaining immense popularity and is in demand, enjoying an explosive growth rate with the rise in applications in Artificial Intelligence, the Internet of Things, and automotive technologies. The strategic move of launching a subsidiary would prove to be beneficial for the company’s long term visiom to gain a key position in the market.
Cyient Semiconductors is the name given to the new subsidiary. It will be focusing on an integrated circuit design, verification services, and would eventually partner with foundries across the globe. Cyient aims to provide services across a diverse global clientele, covering sectors like defense, telecom, automobile, etc.
According to Krishna Bodanapu, the Executive Vice Chairman and MD at Cyient, this move would help Cyient build capabilities across the semiconductor value chain. “As the world becomes increasingly digital, semiconductor innovation will be the bedrock of every smart technology. With Cyient Semiconductors, we are committing ourselves to this future,” he said.
The company has allocated around ₹750 crore for infrastructural development, talent acquisition, and Research& Development. Cyient is also intending to collaborate with academic institutions and government initiatives.
As per reports from Coherent Market Insights, the semiconductor equipment market is poised to reach at USD 105.32 billion in 2025. It is anticipated to reach USD 198.92 billion by 2032. The market is expected to grow with an increasing Compound Annual Growth Rate (CAGR) of 9.5% from 2025 to 2032. The increase in investments by major players, the rise in the use of smartphones and other similar electronic devices, and technological advancements such as the Internet of Things, 5G networks, and Artificial Intelligence are some driving factors that contribute significantly to the market’s growth.
“The logic chip segment is expected to witness heightened demand, especially from cloud service providers for enhanced server capabilities. The memory chip market will see improved investments into new fabrication facilities from leading manufacturers to meet the exponential data storage needs,” says a senior analyst at Coherent Market Insights.
A few industry experts have shown faith in Cyient’s new subsidiary. They say that it is well-positioned to benefit from the surge in chip demand globally and the country’s push to become a semiconductor manufacturing hub.
Source:
News outlet: business standard
