Cyient Ltd Partners Azimuth AI for India's First Patented Smart Meter Chip, Targeting June 2026 Launch

Cyient Ltd, alongside its investment in semiconductor design startup Azimuth AI, is poised to revolutionize the smart meter industry with the upcoming launch of a locally patented 40-nanometre (nm) System-on-Chip (SoC). This groundbreaking chip, the result of a two-year development cycle and a ₹150 crore investment by Azimuth AI, is set to become one of the first privately designed and commercialized SoCs powering industrial applications. Azimuth AI estimates this chipset will bring 20-30% local value addition for its clients.

The SoC is currently in its final technical evaluation stages for integration into smart meters, with commercial deployment slated for June 2026. Cyient is targeting the global smart meter market, valued at a substantial $29 billion. This initiative places Cyient alongside other Indian companies like Mindgrove Technologies in advancing indigenous semiconductor capabilities, aligning with the government's broader strategy to bolster local chip manufacturing and reduce reliance on global supply chains.

Krishna Bodanapu, executive vice-chairman and managing director of Cyient, highlighted the reusability of the chip design, stating that around 70% of the patent can be adapted for SoCs in other sectors like power, space, and battery management, enhancing security against potential backdoors. Cyient, which acquired a 27.3% stake in Azimuth AI for $7.5 million (₹66 crore) last October and recently formed a wholly-owned subsidiary, Cyient Semiconductor, is aiming for the global semiconductor market projected to reach $2 trillion by 2032. The company currently employs 600 semiconductor engineers, with plans to build a diverse portfolio of indigenously designed chips. Union IT minister Ashwini Vaishnaw has indicated that more such Indian-developed chips are expected. Notably, the smart meter chip development did not receive direct government incentives, though discussions are ongoing regarding potential future support.

Impact

This development has a significant impact on the Indian stock market by bolstering investor confidence in the domestic technology and semiconductor manufacturing sectors. It positions Indian companies like Cyient as key players in the global tech landscape, potentially leading to increased foreign investment and higher valuations for companies involved in the semiconductor ecosystem. The news also reinforces the government's 'Make in India' and 'Atmanirbhar Bharat' initiatives, which are crucial for economic growth and technological self-reliance.

Impact Rating: 8/10

Difficult Terms Explained:

• System-on-Chip (SoC): An integrated circuit that integrates all essential components of a computer or other electronic system onto a single chip. It typically includes a processor, memory, and input/output peripherals.
• 40-nanometre (nm): Refers to the process technology node used in semiconductor manufacturing. A smaller nanometre number (like 40nm) generally indicates a more advanced, denser, and often more power-efficient chip.
• Indigenous: Originating from or belonging to a particular country; native. In this context, it means designed and developed in India.
• Semiconductor: A material such as silicon, used to create integrated circuits (chips).
• Ecosystem: A complex network of interconnected parts, in this context referring to the companies, institutions, and infrastructure involved in the semiconductor industry.