Shares of Cyient Limited jumped over 7% to ₹1,905 on July 12 after the company announced it is expanding its semiconductor business by creating a new, fully-owned subsidiary.
Strategic Expansion
Cyient stated in a regulatory filing that with the global semiconductor market expected to reach a trillion dollars by 2030, and the Indian Electronics and Semiconductor Association (IESA) predicting the industry to grow to $100 billion by 2030, the company is well-placed to benefit from these growth opportunities.
About Cyient
Based in Hyderabad, Cyient is a multinational technology company specializing in engineering, manufacturing, data analytics, networks, and operations. The company has expertise in semiconductor electronics through Cyient DET and Cyient DLM.
New Subsidiary
The new subsidiary will focus on ASIC design and chip sales using a fabless model for analog mixed-signal chips. This move aims to add value for stakeholders and provide continued support.
Growth Potential
Cyient has a portfolio of over 600 IPs, strong customer relationships, and global capabilities. The new subsidiary is expected to boost Cyient’s industry position by delivering specialized ASIC design and chip sales, meeting market demands, and addressing the technology and capital needs of the industry.
Market Reaction
By 12:55 pm, Cyient shares were trading at ₹1,830, up 3.3% from the last close on the NSE. Despite this rally, Cyient shares have dropped 20% since the start of the year.
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