Bengaluru: Domestic engineering solutions major Cyient aims to strengthen its semiconductor ambitions by acquiring a majority 65% stake of Kinetic Technologies, a US based analogue chip designer known for its power management integrated circuits used for industrial equipment, consumer electronics, automotive systems and data-centric applications.
“Cyient Semiconductors has signed a definitive agreement to acquire a majority stake in Kinetic Technologies, a global leader in power management, high-performance analog and mixed-signal ICs for a total consideration of up to USD 93 million,” Cyient said in a press release.
The acquisition, done through its semiconductor arm Cyient semiconductor, aims to help the company achieve 6% total revenue from its semiconductor vertical by 2026. The Bangalore-based company is working toward building an end-to-end semiconductor solutions portfolio, including chip architecture, design, lifecycle support and validation.
Following this acquisition, Cyient Semiconductor and Kinetic Technologies aim to leverage each others strengths to accelerate growth in their manufacturing systems, engineering and customer access. THe transaction aims to align India’s broader push to build domestic semiconductor expertise beyond its traditional strengths in designing.
India currently accounts for almost 20% of the semiconductor design industry, and such investments by Cyient could boost expertise and know how domestically.
The demand for semiconductors is expected to grow exponentially, especially as local manufacturing of smartphones and other electronics picks up. The Indian semiconductor market is valued at around $50 billion and is expected to reach $100 billion by 2030, even as the government encourages companies to invest in local manufacturing and designing through the Production Linked Incentive (PLI) and Design Linked Incentive (DLI) schemes.
