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.
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. The deal remains subject to definitive agreements and customary closing conditions, Cyient stated.
Cyient Semiconductor said the capital will be utilized to advance its product research and development roadmap across custom power semiconductors and custom application-specific standard products (ASSPs). The funds will also support building in-house semiconductor validation and testing infrastructure in India, as well as working capital requirements as the company scales larger, longer-cycle global customer programs.
The company positioned the investment against 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. 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.
“Power is the defining constraint on AI’s next decade,” said Suman Narayan, CEO of Cyient Semiconductor, adding that the financing would accelerate the company's push to build a globally relevant power semiconductor business from India.
