In a major strategic move, Cyient Semiconductors announced on Wednesday that it has acquired a majority stake in Kinetic Technologies for a deal worth up to $93 million. This acquisition is designed to significantly strengthen Cyient's position in the custom power integrated circuit (IC) sector, with a sharp focus on the high-growth edge artificial intelligence (AI) and high-performance compute markets.
A Strategic Leap into a $40 Billion Market
The acquisition marks a pivotal step for Cyient Semiconductors as it seeks to establish itself as a leader in the Application-Specific Integrated Circuit (ASIC)-led custom power semiconductor space within India. According to an official company statement, the integration of Kinetic Technologies' specialized expertise in power management, high-performance analog, and mixed-signal ICs will bolster Cyient's capabilities in the vast $40 billion global power semiconductor market.
This development is projected to accelerate growth across a diverse range of sectors. Key industries set to benefit include data centers, automotive electrification, networking, industrial automation, and the rapidly emerging edge AI compute segment.
Synergy of Design Leadership and Proprietary Tech
Cyient stated that this collaboration merges its own semiconductor design leadership with Kinetic Technologies' robust portfolio. Kinetic's offerings include advanced solutions for power conversion, display power, protection, and interface. The newly formed joint entity is strategically positioned to capture a leadership role in high-growth markets by leveraging Kinetic's proprietary technologies and a portfolio of over 100 patents.
This partnership is expected to significantly expedite the development of custom chips. It will enable Cyient to deliver comprehensive system-level solutions that offer superior performance, scalability, and cost efficiency to its global customer base.
Leadership Voices on the Partnership
Suman Narayan, CEO of Cyient Semiconductors, commented on the strategic fit, saying, “Combining Kinetic’s power management and protection IC depth with Cyient Semiconductors’ custom ASIC engine materially strengthens our platform strategy catering to exploding AI demands.”
Kin Shum, CEO of Kinetic Technologies, expressed optimism about the future. He noted, “Kinetic Technologies can greatly benefit from the semiconductor market opportunities, talent availability in India, and having a strategic partner like Cyient Semiconductors backing our future growth prospects.”
Ensuring Continuity and Future Growth
The acquisition is set to leverage Kinetic Technologies' established engineering-driven culture and its strong customer relationships. To ensure a smooth transition and continuity, the current leadership team and engineering organization at Kinetic will continue to operate within its existing structure. This move underscores Cyient Semiconductors' deep commitment to expanding its footprint and influence in the competitive global semiconductor industry.
