Hyderabad: Cyient Semiconductor, a wholly owned subsidiary of Cyient Ltd, on Monday announced a strategic financing transaction with funds managed by EAAA India Alternatives Ltd (Edelweiss) and affiliated co-investors. The deal values the Hyderabad-headquartered chip company at approximately $500 million on a post-money basis.
Transaction Details
The transaction comprises an equity investment of around $10 million (approximately Rs 96 crore) and about $20 million in structured debt, bringing the total financing package to roughly $30 million. However, the deal remains subject to definitive agreements and customary closing conditions, Cyient stated.
Utilization of Funds
Cyient Semiconductor said the capital will be deployed to advance its product research and development roadmap across custom power semiconductors and custom application-specific standard products (ASSPs). Additionally, the company plans to build in-house semiconductor validation and testing infrastructure in India and support working capital requirements as it scales larger, longer-cycle global customer programs.
Strategic Context
The company positioned the investment against the backdrop of rising power demands driven by artificial intelligence. It cited expectations that data center energy consumption could climb nearly fourfold by 2030, making power efficiency a key constraint for AI infrastructure growth.
Cyient Semiconductor also highlighted accelerating momentum in India's semiconductor ecosystem, supported by MeitY-led initiatives including the India Semiconductor Mission and the Design Linked Incentive scheme, alongside broader policy support for fabs, OSAT, and chip design.
Recent Milestones
Over the past year, the company acquired Kinetic Technologies, a power semiconductor firm with more than three billion chips shipped, over 250 products, and more than 100 patents. It also launched what it described as India's first GaN power IC family with Navitas Semiconductor, formed partnerships with GlobalFoundries, MIPS, and Navitas, and secured the SCL modernization program.
Quote from CEO
"Power is the defining constraint on AI's next decade," said Suman Narayan, CEO of Cyient Semiconductors, adding that the financing would accelerate its push to build a globally relevant power semiconductor business from India.
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About the Author
Swati Bharadwaj is a business journalist with 30 years of experience covering a host of sectors – right from technology, GCCs, talent, cybersecurity, pharma and biotech, aerospace and defence, BFSI, gems and jewellery to automotive, hospitality, infrastructure, retail, among others. She has worked with TOI and ET across multiple cities such as Hyderabad, Bengaluru, Pune and Ahmedabad.
