Cyient Semiconductors to Acquire Majority Stake in Kinetic Technologies

Cyient Semiconductors, a custom ASIC and ASSP chip provider based in Hyderabad, is set to acquire a majority stake in Kinetic Technologies, a California-based power management semiconductor firm. The deal will be done for a total consideration of up to $93 million, as it looks to expand its presence in the power semiconductor market.

The acquisition will strengthen Cyient Semiconductors’ capabilities in power management, analog and mixed-signal integrated circuits, targeting data centres, edge AI, automotive and industrial automation markets.

Under the agreement, Kinetic Technologies’ existing leadership team and engineering organisation will continue to operate within the current structure, aligned with Cyient Semiconductors’ strategic direction and board oversight.

Kin Shum, CEO of Kinetic Technologies, said the company would benefit from market opportunities and the availability of talent in India. “The Indian market is at the cusp of disruption in semiconductor, like how other Asian countries were 10–15 years ago,” he said in a statement.

Cyient said the transaction aims to accelerate its growth across high-performance computing, networking and electrification, and is subject to customary closing conditions, with completion expected in the coming months.

The acquisition will also help Cyient build scale in the global power semiconductor market, which it estimates at more than $40 billion. Kinetic brings a portfolio of power conversion, display power, protection, and interface solutions, along with more than 100 patents in power and protection architectures.

“Combining Kinetic’s power management and protection IC depth with Cyient Semiconductors’ custom ASIC engine materially strengthens our platform strategy catering to exploding AI demands,” said Suman Narayan, CEO of Cyient Semiconductors. He added that the combination would help shorten development cycles and improve the ability to address power, thermal and reliability challenges in large-scale systems.

Cyient said the combined platform will focus on application-specific power management ICs for data centres, communications, medical electronics and industrial IoT, with an emphasis on performance and cost efficiency.

Cyient Semiconductors operates design centres in India, Belgium and the United States, while Kinetic Technologies is headquartered in San Jose and runs R&D centres in Silicon Valley and Asia.