In a significant boost to India's semiconductor ambitions, technology solutions company Cyient Ltd and its backed startup Azimuth AI are set to begin supplying the country's first privately-designed 40-nanometer chip for smart electricity meters starting June 2026.
Groundbreaking Semiconductor Achievement
The system-on-chip (SoC), developed over two years with an investment of ₹150 crore, represents one of the first indigenously designed and commercialized semiconductor solutions for industrial applications. According to top executives from both companies, the chip is now production-ready and undergoing final technical evaluation for integration into smart meters.
Sridevi Badiga, cofounder and chief growth officer of Azimuth, revealed in an exclusive interaction that the locally patented chip will provide substantial value addition for clients. "While it is hard to quantify the exact value addition, we're looking at a local value addition of 20-30% from the chipset for our clients that we are selling to," Badiga stated.
Strategic Expansion Plans
The smart meter chip is just the beginning of a broader semiconductor strategy. Krishna Bodanapu, executive vice-chairman and managing director of Cyient, emphasized the reusable nature of their chip design approach. "There will be more such opportunities. The goal is that when a chipset is patented, about 70% of this design and patent is reusable in a modified SoC that will cater to another sector," Bodanapu explained.
The companies plan to leverage this technology across multiple critical industries, including:
- Power sector applications
- Space technology systems
- Battery management services
- Energy storage solutions
Bodanapu highlighted the security advantages of their approach: "While we're setting off with a chipset for smart meters, we'll venture into other industries such as power, space and battery management services, which ensure that these critical operations have no backdoors that could pose security challenges."
Building Semiconductor Capability
Cyient's commitment to the semiconductor sector is demonstrated by its strategic investments and organizational changes. The company acquired a 27.3% stake in Azimuth AI for $7.5 million (₹66 crore) in October last year, followed by the establishment of a wholly owned subsidiary, Cyient Semiconductor, in April.
The company currently employs 600 dedicated semiconductor engineers and designers, with 200 based in overseas locations. "Our goal is to create a portfolio of indigenously designed and owned chips that can then be sold in various markets," Bodanapu stated, emphasizing their ambition to build a comprehensive chip portfolio for diverse applications.
Government Support and Industry Context
Notably, the smart meter chip was developed without government design or production incentives, though the companies are now in discussions with the Centre about potential support. This achievement comes amid broader government efforts to boost local semiconductor capabilities.
Union IT minister Ashwini Vaishnaw recently indicated that 30 more chips similar to Azimuth's are expected to emerge from Indian enterprises. The government is also considering a $4-billion incentives package to boost electronics components and semiconductor design, with a $2.7-billion scheme already launched for local electronics component manufacturing.
The development aligns perfectly with India's push for technological self-sufficiency and comes at a time when the global smart meter market is valued at $29 billion, presenting significant export opportunities for made-in-India semiconductor solutions.
