Aiming to revolutionise ASIC chip development for global markets, Cyient is boosting its semiconductor game by acquiring a 27.3% stake in Azimuth AI for $7.25 million.
On Monday, Cyient, an IT engineering service provider, announced that it had acquired a 27.3% stake in Azimuth AI, a fabless custom ASIC (application-specific integrated circuit) company, for $7.25 million. The company noted in a filing that this investment is expected to enhance its capabilities in the semiconductor sector.
In an official statement, Cyient highlighted that this acquisition will help them develop advanced ASIC chips in India for a global market while reinforcing their focus on power and energy solutions.
Krishna Bodanapu, the executive vice chairman and managing director of Cyient, stated that the Indian Government’s initiatives to promote domestic semiconductor innovation are positioning the country as a centre for chip development, especially in energy-efficient systems. This partnership is a part of it.
This marks Cyient’s third merger and acquisition deal this month. Last week, the Hyderabad-based firm signed to purchase Abu Dhabi & Gulf Computer Est (ADGCE), a technology consulting and digital services provider focused on the energy sector.
Additionally, earlier this month, Cyient DLM Limited, a subsidiary of Cyient, finalised an agreement with Altschuler Holdings to acquire all shares of Altek Electronics Inc., a U.S.-based electronic manufacturing services provider, for $29.2 million.
Praveen Yasarapu, founder and CEO of Azimuth AI, expressed excitement about the collaboration, noting clear synergies between their companies. He highlighted the potential to combine Cyient’s ASIC design expertise with its track record of innovative solutions, aiming to create groundbreaking semiconductor technologies for both global and Indian markets.