Cyient Announces Plan to Double Semiconductor Business by FY27

Cyient has announced its strategic plan to double its semiconductor business by FY27, marking a significant expansion initiative in the high-growth semiconductor sector. The announcement underscores the company's commitment to strengthening its position in the semiconductor market and capitalizing on emerging opportunities in this critical technology segment.

Strategic Growth Initiative

The semiconductor business expansion plan represents a major strategic milestone for Cyient as it seeks to enhance its market presence in this rapidly evolving sector. The company's decision to double its semiconductor operations by FY27 indicates confidence in both market demand and its internal capabilities to execute this growth strategy.

Market Positioning

This expansion initiative aims to position Cyient to better serve the growing demand for semiconductor solutions across various industries. The semiconductor sector has been experiencing significant growth driven by digital transformation, automotive electronics, and emerging technologies, making it an attractive area for business expansion.

Future Outlook

The announcement reflects Cyient's long-term vision to establish itself as a key player in the semiconductor ecosystem. By committing to double its semiconductor business within the specified timeframe, the company is demonstrating its strategic focus on high-value technology segments that offer substantial growth potential.

In conclusion, Cyient's growth strategy signals expansion plans in the semiconductor sector, aiming to double its semiconductor business operations by FY27. This move highlights the company's confidence in the industry's potential and its own capabilities to capitalize on emerging opportunities in this critical technology segment.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.28%	-2.35%	-0.52%	-13.25%	-39.55%	+117.18%

Cyient has made available the complete transcript of its December 18, 2025 conference call discussing the strategic acquisition of Kinetic Technologies, providing detailed insights into the $93 million transaction that will accelerate the company's semiconductor product strategy and establish India's first ASIC-led custom power semiconductor platform.

Strategic Vision and Three-Pillar Approach

Executive Vice Chairman and Managing Director Krishna Bodanapu outlined Cyient Semiconductors' mission to become India's first and largest semiconductor company through a comprehensive three-pillar strategy. The approach focuses on delivering high-end services, providing end-to-end custom chips (turnkey ASIC), and developing proprietary custom chips for specific applications.

Strategic Pillars:	Focus Areas
High-End Services:	Complex semiconductor programs, national interest projects
Turnkey ASIC:	Custom chip design, manufacturing, testing, packaging
Custom Products:	Power-related applications, AI, data centers, electrification

Kinetic Technologies Acquisition Rationale

CEO of Cyient Semiconductors Suman Narayan emphasized that the Kinetic acquisition accelerates their power strategy by years and doubles their addressable market to $8.50 billion. The transaction brings approximately 250 ASSP products and over 100 product patents, enabling cross-leverage across both custom ASSP and turnkey ASIC business pillars.

Acquisition Benefits:	Details
Market Expansion:	Doubles addressable market to $8.5 billion
Product Portfolio:	250 ASSP products, 100+ patents
Customer Relationships:	10+ year relationships with deep switching costs
Financial Impact:	EBIT positive from year one, EPS accretive from year two

Financial Performance and Projections

CFO Ramya Mohan provided detailed financial insights during the Q&A session, confirming that Kinetic Technologies' current estimated revenue is $40.00 million with positive momentum following their strategic pivot away from consumer markets. The acquisition is structured to provide 70%-75% ownership initially, with a path to full control within four years.

Financial Metrics:	Projections
Current Revenue:	$40.00 million (estimated)
Revenue Growth:	15%-20% year-over-year
Gross Margins:	45%-50% achievable
EBIT Margin:	Few percentage points above services business
Ownership Structure:	70%-75% initial, path to full control in 4 years

Revenue Mix Evolution Strategy

The management outlined the expected evolution of Cyient Semiconductors' revenue composition following the Kinetic integration. By the end of FY27, the ASSP business (custom product IP) is projected to represent 50%-55% of total revenue, with custom ASIC turnkey contributing 30% and services maintaining 15%.

Business Segment:	Current Mix	FY27 Target
ASSP Products:	0% (startup phase)	50%-55%
Custom ASIC Turnkey:	35%	30%
Services:	65%	15%

Strategic Partnerships and Ecosystem Development

The conference call highlighted Cyient's deliberate approach to building critical semiconductor ecosystem partnerships. Key alliances include Global Foundries for fab access and wafer economies, Amkor for assembly and packaging expertise, and Navitas for compound semiconductor technologies like GaN for data centers.

Market Opportunity and AI Power Demands

Bodanapu emphasized the massive market opportunity driven by AI power consumption, noting that a single AI query consumes 100 times more power than a Google query. Global AI electricity demand is projected to reach 21% by 2030, equivalent to the combined electricity consumption of India and Japan, creating substantial demand for power-efficient semiconductor solutions.

Conference Call Availability

The complete transcript of the December 18, 2025 conference call has been filed with BSE and NSE under Regulation 30 requirements. The recording remains accessible on Cyient's website under the investor relations section, providing stakeholders with comprehensive insights into the strategic acquisition and future growth plans for the semiconductor business.