HARNESSING GLOBAL SEMICONDUCTOR GROWTH

Cyient has launched its subsidiary, Cyient Semiconductors, at a pivotal moment for the global semiconductor industry.

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In an exclusive interview with Nisha Shukla, Krishna Bodanapu, Executive Vice-Chairman and Managing Director of Cyient, along with the newly appointed CEO of Cyient Semiconductors, Suman Narayan, discuss the rationale behind this strategic move, their ambitions, and the investment roadmap designed to advance semiconductor innovation.

At a crucial moment for the global semiconductor industry, Cyient has made a significant strategic decision by reorganising its semiconductor business into a wholly owned subsidiary called Cyient Semiconductor. This move represents not only a structural change but also a strategic shift aimed at meeting the demand and growth opportunities within this sector.

Krishna Bodanapu, Executive Vice-Chairman and Managing Director of Cyient, explained the reasoning behind this shift: “As aptly pointed out, we are at an inflection point. There's a substantial increase in the use of semiconductors across industries for several reasons—rising chip consumption and India's growing relevance in the global value chain, among others.” Yet, this promising opportunity highlighted a deeper structural misfit. “The economics of semiconductors are very different from those of a traditional services company. It involves substantial investments upfront in R&D and intellectual property. If we were to scale this business within Cyient Limited, it would distort the group's overall financial structure and potentially impact shareholder value. That's why we created a separate capital structure—so that we can invest according to the business's true potential.”