The board of directors of Cyient Ltd has given the in-principle approval for the reorganisation of the global end-to-end semiconductor business into a wholly owned subsidiary of the company, to enable dedicated focus on this business.

Eyeing to tap the huge opportunity in the semiconductor, the company announced plans last year to set up an exclusive subsidiary.

Announcing the move, Ramya Mohan, Vice President and Head of Group Strategy, Cyient, told businessline in November 2024 pegged the size of the global semiconductor industry at $600 billion. She said it could reach $1 trillion by 2030, growing at an annual growth rate of 12-13 per cent, indicating substantial potential. 

The audit committee had earlier approved the business transfer agreement between the company and its wholly owned subsidiary, Cyient Semiconductors Private Ltd, for the transfer of the company’s semiconductor business in India (including a branch in Taiwan), along with all assets, liabilities, contracts, and employees to the later for a consideration of ₹60.8 crore.

The restructuring also involves the transfer of the semiconductor business of the company in the US to Cyient Semiconductors Inc, a wholly owned subsidiary of Cyient Semiconductors Private Ltd, for ₹24 crore. A similar arrangement was okayed between Cyient GmbH, the German subsidiary of Cyient, to Cyient Semiconductors GmbH, a step-down subsidiary of Cyient Semiconductors Private Limited, for ₹31.7 crore.

The company’s Belgium arm will be transferred for ₹197 crore.