New Delhi, Dec. 18 -- Cyient Semiconductors has signed a definitive agreement to acquire a majority stake in Kinetic Technologies, a US-based power management and high-performance analogue semiconductor company, for a total consideration of up to $93 million.
Kinetic Technologies, a fabless power management and analogue semiconductor firm headquartered in San Jose, brings deep expertise in power conversion, protection and mixed-signal ICs, with more than 100 patents and long-standing relationships across global OEMs. Its R&D footprint spans Silicon Valley and Asia.
The acquisition positions Cyient Semiconductors to significantly scale its presence in the global power semiconductor market, estimated to be worth over $40 billion, spanning data centres, electrification, automotive, networking, industrial automation and emerging edge AI workloads. With its headquarters in Hyderabad, Cyient has a strong international presence catering to aerospace, defence, automotive, industrial, and semiconductor customers.
"This acquisition materially strengthens our platform strategy catering to exploding AI demands," said Suman Narayan, CEO of Cyient Semiconductors. "It will help shorten development cycles and scale our ability to solve complex power, thermal and reliability problems in high-volume systems."
Narayan added that the combined entity will focus on delivering application-specific power management ICs for sectors such as data centres, communications, medical electronics and industrial IoT, with an emphasis on performance and total cost efficiency.
As part of the transaction, Kinetic Technologies' leadership team and engineering organisation will continue to operate within their existing structure, ensuring continuity for customers and partners. The acquisition is designed to preserve Kinetic's engineering-driven culture while aligning it with Cyient Semiconductors' long-term strategic direction.
"Kinetic Technologies can greatly benefit from the semiconductor market opportunities and talent availability in India, and from having a strategic partner like Cyient Semiconductors backing our future growth," said Kin Shum, CEO of Kinetic Technologies. "India is at the cusp of a semiconductor disruption, similar to other Asian markets a decade ago."
The deal marks a significant step in India's push to move up the semiconductor value chain, from design services to custom silicon platforms. The transaction is subject to customary closing conditions and is expected to be completed in the coming months, the company said.
Published by HT Digital Content Services with permission from TechCircle.