Infosys on January 11 said it will acquire InSemi, a leading semiconductor design and embedded services provider. The IT firm will pay Rs 280 crore for a 100 percent stake in the firm.
"This strategic investment further strengthens Infosys’ engineering R&D capabilities and demonstrates its continued commitment to co-create with global clients to help them navigate their digital transformation journey," the IT services company said in a release as it shared its December quarter numbers.
Also read: Infosys ADR spikes 5% despite weak Q3 performance
Semiconductors, which are at the heart of electronic gadgets from toys to smart devices, are in the spotlight as companies race to build the most powerful chips to make the most of the artificial intelligence (AI) boom, the next tech frontier.
Infosys said the buyout would help accelerate its chip-to-cloud strategy by bringing niche design skills at scale and would also pair seamlessly with its existing investments in AI/automation platforms and industry partnerships.
India’s second-largest IT services company reported a 7.3 percent year-on-year fall in net profit at Rs 6,106 crore in the third quarter, which is below Moneycontrol’s estimates of Rs 6,244 crore.
Founded in 2013, InSemi offers end-to-end semiconductor design services with expertise across electronic design, platform design, automation, embedded and software technologies. It serves leading global corporations across semi-conductor, consumer electronics, automotive, and hi-tech industries.
“With the advent of AI, Smart devices, 5G and beyond, electric vehicles, the demand for next-generation semiconductor design services integrated with our embedded systems creates a unique differentiator. InSemi is a strategic
investment as we usher a next wave of growth and a leadership position in Engineering R&D,” said Dinesh R, EVP & Co-Delivery Head, Infosys.
Also read: Infosys to skip campus hiring again, TCS to resume from FY25
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