Cyient Semiconductors has secured a new financing deal with funds managed by EAAA India Alternatives (Edelweiss) and affiliated co-investors, involving an equity investment of around $10m at a post-money valuation of about $500m.
The agreement also features structured debt capital, bringing the total transaction size to roughly $30m, subject to the completion of definitive agreements and standard closing conditions.
The company plans to use the funds to strengthen its capital structure and support the ongoing expansion of its global semiconductor business.
The new capital will be allocated to product research and development in custom power semiconductors and custom application-specific standard products (ASSPs). It will also support in-house semiconductor validation and testing infrastructure in India, and address working capital needs as the company takes on larger, longer-cycle programmes with global clients.
This transaction comes at a time when demand for power efficiency in AI infrastructure is increasing, with projections indicating that data centre energy consumption may quadruple by 2030.
India’s semiconductor sector is experiencing renewed policy focus, aided by pro-growth initiatives such as the India Semiconductor Mission and the Design Linked Incentive scheme.
These policies are supporting development across chip design, fabrication, and packaging, as well as promoting investment within the domestic value chain.
Over the past year, Cyient Semiconductors has broadened its portfolio through the acquisition of Kinetic Technologies, a company with more than 3 billion chips shipped and over 100 patents.
The firm has also introduced India’s first gallium nitride power integrated circuit family in collaboration with Navitas Semiconductor, and has established partnerships with GlobalFoundries, MIPS, and Navitas.
Additionally, Cyient Semiconductors secured the SCL modernisation programme, which aligns with India’s semiconductor roadmap.
These developments form part of Cyient Semiconductors’ shift towards a product-driven platform, offering custom silicon and power semiconductor solutions for markets in AI, automotive, industrial, and communications sectors.
The company’s strategy aims to build proprietary technology, develop system-led silicon products, and establish a stronger presence across the semiconductor value chain.
Cyient Semiconductors chief executive officer Suman Narayan said: “Power is the defining constraint on AI’s next decade and solving it requires semiconductor companies that combine deep custom silicon capability with proprietary power IP.
