Cyient to Design Chips with Improved Power and M2M Capabilities for Automotive, Data Centre, Medical Equipment, Aerospace and Defence Applications.

Cyient plans to design chips for automotive, data center, medical equipment, and aerospace and defense applications using its 800-900 intellectual property rights. The focus will be on power and machine-to-machine communications. A $100 million investment has been earmarked for the new subsidiary, Cyient Semiconductors, which has partnered with MIPS to create specialized ASIC and ASSP solutions.

Hyderabad-based engineering and technology solutions firm Cyient has announced plans to design chips for automotive, data center, medical equipment, and aerospace and defense applications. The company, leveraging its extensive intellectual property (IP) rights, aims to focus on power and machine-to-machine communications for these industries [1].

Cyient's new subsidiary, Cyient Semiconductors, has been established to concentrate on application-specific integrated circuit (ASIC) turnkey solutions. The company has earmarked a $100 million investment over the next one to two years to support this venture. This investment will be used to capitalize on the growing demand for specialized chips in various applications [1].

The semiconductor industry is witnessing significant growth driven by the rise of AI computing, advanced robots, and other emerging technologies [2]. Cyient's strategic tie-up with MIPS, a global foundries company, will enable it to create specialized ASIC and application-specific standard product (ASSP) solutions using the MIPS Atlas processor portfolio. This partnership is expected to enhance Cyient's capabilities in developing high-performance chips tailored to specific industries [1].

Despite global geopolitical tensions and mineral supply disruptions, Cyient has reported no impact on its chip production or supply chains. The company subcontracts the manufacturing of 5 million chips to global foundries and has seen no disruption from international foundries. The ongoing global disruption in critical mineral supplies has also not affected the semiconductor manufacturing sector so far [1].

Cyient's comfortable cash position is expected to support much of the investment in Cyient Semiconductors. The company's focus on ASIC solutions aligns with the growing demand for specialized chips in various applications, presenting significant opportunities for growth in the coming years.

References:
[1] https://economictimes.indiatimes.com/tech/technology/cyient-to-design-chips-with-improved-power-m2m-capabilities-official/articleshow/123310837.cms?UTM_Campaign=RSS_Feed&UTM_Medium=Referral&UTM_Source=Google_Newsstand
[2] https://asia.nikkei.com/business/technology/synopsys-says-new-era-dawning-in-chip-design-due-to-ai-robotics-demand