The National Company Law Tribunal (NCLT) Bengaluru bench has set in motion the corporate insolvency resolution process for Infotech HAL Limited, a joint venture between Cyient Limited and Hindustan Aeronautics Limited (HAL). This development marks a significant turn of events for the aerospace and engineering services sector.

Key Developments

• The NCLT has admitted a petition for the corporate insolvency resolution process of Infotech HAL Limited.
• Infotech HAL Limited is a 50:50 joint venture between Cyient Limited and HAL.
• The insolvency petition was filed under CP (IB) No. 99/BB/2024.
• Mr. Vasudevan Gopu has been appointed as the Interim Resolution Professional to oversee the process.

Legal Framework

The insolvency proceedings have been initiated under Section 10 of the Insolvency and Bankruptcy Code, 2016. This section allows a corporate debtor to file an application for initiating the corporate insolvency resolution process.

Company Disclosure

Cyient Limited, in compliance with regulatory requirements, has made an official disclosure regarding this development. In a notice addressed to the BSE Limited and the National Stock Exchange of India Ltd, Ravi Kumar Nukala, Deputy Company Secretary of Cyient Limited, stated:

"The Hon'ble National Company Law Tribunal, Bengaluru bench ("NCLT") has admitted the petition in CP (IB) No. 99/BB/2024 filed by Infotech HAL Limited (a 50:50 joint venture of the Company with HAL) under Section 10 of the Insolvency and Bankruptcy Code, 2016."

Implications and Next Steps

The commencement of the insolvency resolution process for Infotech HAL Limited could have significant implications for both Cyient Limited and HAL. As the process unfolds, stakeholders will be closely watching the proceedings and their potential impact on the joint venture's operations and the parent companies.

The appointment of Mr. Vasudevan Gopu as the Interim Resolution Professional signals the beginning of a structured process to address the financial situation of Infotech HAL Limited. The resolution professional will be responsible for managing the company's affairs and exploring potential restructuring or resolution plans.

As this situation develops, investors and industry observers will be keenly awaiting further updates on the insolvency proceedings and their outcomes for all parties involved.

Cyient Semiconductors Private Limited, a rapidly growing custom silicon company, has announced a significant strategic move in the semiconductor industry. The company has entered into a Channel Partner Agreement with GlobalFoundries (GF), a leading pure-play semiconductor foundry, positioning itself as an authorized reseller of GF's semiconductor manufacturing services and technologies.

Expanding Access to Advanced Semiconductor Manufacturing

The partnership aims to broaden access to GlobalFoundries' advanced semiconductor manufacturing capabilities and high-performance, energy-efficient process technologies. As a channel partner, Cyient Semiconductors will offer a comprehensive suite of services to companies, including:

• Fabrication access
• Technical consultation
• Design enablement
• Assembly and testing
• Other value-added services

These offerings are designed to accelerate innovation and reduce time-to-market for semiconductor products.

Strategic Implications for Cyient Semiconductors

Suman Narayan, CEO of Cyient Semiconductors, emphasized the significance of this partnership, stating, "This partnership unlocks a new dimension in our growth strategy. It positions us to serve the fast-growing ecosystem of fabless companies with access to world-class foundry capabilities and advanced technologies from GlobalFoundries."

Narayan further added that by combining GF's capabilities with Cyient Semiconductor's turnkey ASIC capabilities, the company is poised to play a catalytic role in accelerating semiconductor innovation across various sectors, including:

• Automotive
• Industrial
• Medical
• Communication

Collaborative Approach

To ensure a smooth transition from concept to production for emerging customers, Cyient Semiconductors and GlobalFoundries will collaborate closely. A dedicated team has been established to facilitate efficient coordination, technical support, and service delivery.

GlobalFoundries' Perspective

Samuel Vicari, Chief Customer Officer at GlobalFoundries, highlighted the alignment of this partnership with GF's strategic goals. He stated, "Cyient Semiconductors brings strong domain expertise, customer-centricity, and complementary design capabilities that align perfectly with GF's mission to expand our strategic alliances across the semiconductor industry and deliver innovative technologies for essential industries globally."

Mutual Benefits and Industry Impact

The agreement reinforces GlobalFoundries' channel strategy to serve high-potential but underrepresented customers. Simultaneously, it enables Cyient Semiconductors to strengthen its presence in the global semiconductor value chain.

This strategic partnership is expected to empower next-generation companies to scale faster and smarter, without compromising on the quality and reliability expected from a leading global foundry.

As the semiconductor industry continues to evolve rapidly, collaborations like this between Cyient Semiconductors and GlobalFoundries are likely to play a crucial role in driving innovation and meeting the growing demand for advanced semiconductor solutions across various sectors.