Cyient shares rally 7% on decision to expand semiconductor business

Cyient shares have tanked 20 percent since the start of the year.

Shares of Cyient Limited surged over 7 percent to Rs 1,905 in the afternoon on July 12 after the company announced a strategic expansion of its Semiconductor business with the establishment of a fully owned
subsidiary.

"As the global semiconductor market is expected to hit a trillion dollars by 2030 and the Indian Electronics and Semiconductor Association (IESA) forecasting the industry's growth to USD 100 billion by 2030, we are well-positioned to capitalize on the vast opportunities for growth and influence in this evolving market," the company said in a regulatory filing.

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Cyient is a Hyderabad-based multinational technology company that is focused on engineering, manufacturing, data analytics, networks and operations.

The company's expertise in semiconductor electronics, through Cyient DET and Cyient DLM, has led to the creation of a new subsidiary focused on ASIC design and chip sales using a fabless model for analogue mixed-signal chips. This move aims to add value for stakeholders with continued support.

With a portfolio of over 600 IPs, strong customer relationships, and global capabilities, Cyient is positioned for significant growth, the management said. The new subsidiary will enhance Cyient's industry position by delivering specialized ASIC design and chip sales, adapting to market demands, and meeting the technology and capital needs of the industry.

At about 12:55 pm, shares of the company were trading at Rs 1,830, up 3.3 percent from the last close on the NSE. Cyient shares have tanked 20 percent since the start of the year.

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