Cyient Semiconductors has raised fresh capital from funds managed by Edelweiss and affiliated co-investors in a deal that values the Hyderabad-based chip company at around $500 million post-money, as the company looks to scale its power semiconductor and custom silicon business amid rising AI infrastructure demand. 

The transaction includes an equity infusion of nearly $10 million (around Rs 100 crore) along with around $20 million in structured debt capital, taking the total financing package to roughly $30 million. The deal remains subject to definitive agreements and customary closing conditions. 

The funding comes at a time when semiconductor companies globally are seeing renewed investor interest as artificial intelligence workloads drive a sharp rise in data centre power consumption and demand for efficient chips.

Over the past year, Cyient Semiconductors has been expanding beyond semiconductor services into product-led offerings. The company acquired San Jose-based Kinetic Technologies, a power semiconductor firm that has shipped over 3 billion chips globally and owns more than 100 patents.

It also launched a gallium nitride (GaN) power IC family in partnership with Navitas Semiconductor and secured the Semiconductor Laboratory (SCL) modernisation programme tied to India’s semiconductor push. 

The company said the fresh capital will be used to expand its product research and development roadmap, build semiconductor validation and testing infrastructure in India and support working capital needs as it scales larger global customer engagements. 

“Power is the defining constraint on AI's next decade and solving it requires semiconductor companies that combine deep custom silicon capability with proprietary power IP,” Suman Narayan, Chief Executive Officer of Cyient Semiconductors, said.

“That is exactly what Cyient Semiconductors is building. This financing from Edelweiss accelerates our journey toward becoming a globally relevant power semiconductor company, built from India, competing on the world stage,” Narayan added.