Blue Cloud Signs Agreement With ConnectM for Semiconductor Development of EdgeAI SoC
Blue Cloud Softech Solutions has entered into a strategic partnership with ConnectM Technology Solutions through an MoU for developing semiconductor-based Edge AI System-on-Chip solutions for automotive cybersecurity. The collaboration features equal revenue sharing, targets USD 50.00 million business volume over five years (2026-2030), and focuses on deployment in critical automotive systems including telematics and vehicle control units.
*this image is generated using AI for illustrative purposes only.
Blue Cloud Softech Solutions Ltd has announced a strategic partnership with ConnectM Technology Solutions Pvt Ltd through a Memorandum of Understanding for the joint development of a semiconductor-based Edge AI System-on-Chip targeting next-generation automotive cybersecurity applications. The collaboration aims to combine BCSSL's expertise in cybersecurity software, AI, and secure systems with ConnectM's strengths in automotive-grade hardware, diagnostics, and OEM integration.
Strategic Partnership Details
Under the terms of the MoU, BCSSL will lead the architecture, design, and development of an advanced Edge AI SoC platform that integrates real-time threat detection, intrusion prevention, and continuous security management capabilities.
| Parameter: | Details |
|---|---|
| Partnership Structure: | Joint development MoU |
| BCSSL Role: | Lead architecture, design, and development |
| ConnectM Role: | Automotive hardware and OEM integration |
| Revenue Sharing: | Equal 50:50 split of net revenues |
| IP Ownership: | BCSSL retains core semiconductor design and cybersecurity IP |
Target Applications and Deployment
The semiconductor solution is being purpose-built for deployment in critical automotive electronic systems. The Edge AI SoC will be exclusively customized for ConnectM's onboard automotive hardware platforms, targeting multiple vehicle control systems.
Key deployment areas include:
- Telematics Control Units (TCUs)
- Vehicle Control Units (VCUs)
- Critical electronic modules for electric vehicles
- Connected vehicle systems
- Software-defined vehicle platforms
Financial Projections and Compliance
Subject to the execution of definitive agreements, the collaboration is projected to generate substantial business volume over the next five years.
| Financial Metric: | Details |
|---|---|
| Projected Business Volume: | USD 50.00 million |
| Time Period: | 2026 to 2030 (5 years) |
| Revenue Model: | 50:50 split after costs and taxes |
The jointly developed Edge AI semiconductor solutions will be engineered to comply with comprehensive global automotive safety and cybersecurity standards, including ISO/SAE 21434 (Road Vehicle Cybersecurity), UNECE WP.29 R155 and R156, ISO 26262 (Functional Safety), and other applicable international and Indian regulatory requirements.
Market Positioning and Strategic Impact
The MoU positions both companies to deliver secure, scalable, and automotive-grade semiconductor solutions that address the growing cybersecurity challenges of electric and connected vehicles. By accelerating time-to-market and enabling OEM-ready deployments, the collaboration aims to strengthen cybersecurity resilience across the evolving mobility ecosystem.
Group Chairman Sri Tejesh Kumar Kodali commented that the semiconductor development partnership marks a significant milestone for Blue Cloud Softech Solutions as the company expands its capabilities into Edge AI System-on-Chip platforms for automotive cybersecurity. The collaboration represents a strategic step in combining advanced cybersecurity intelligence with automotive-grade hardware to build secure, future-ready solutions that meet the demands of next-generation mobility.
