Cyient Semiconductors, a fully owned subsidiary of Indian IT firm Cyient, has entered into an agreement to purchase a majority stake in Kinetic Technologies, a California-based fabless semiconductor manufacturer, for up to $93m.

The deal aims to strengthen Cyient Semiconductors’ position in the global power semiconductor sector, which is valued at over $40bn.

The acquisition is intended to support Cyient Semiconductors’ expansion across various industries including data centres, electrification, automotive, networking, industrial automation, and edge AI compute markets.

Kinetic Technologies, which operates in the power management and integrated circuits segment, brings a portfolio that includes power conversion solutions, display power, protection, and interface technologies.

Following the acquisition, Cyient Semiconductors plans to combine its application-specific integrated circuit (ASIC) design capabilities with Kinetic Technologies’ existing products and intellectual property portfolio.

Kinetic Technologies holds more than 100 patents in power and protection architectures.

Kinetic Technologies CEO Kin Shum said: “Kinetic Technologies can greatly benefit from the semiconductor market opportunities, talent availability in India, and having a strategic partner like Cyient Semiconductors backing our future growth prospects.

“The Indian market is at the cusp of disruption in semiconductor, like how other Asian countries were 10 – 15 years ago, and being part of that journey is exciting.”

Cyient Semiconductors noted that the acquisition will enable it to deliver differentiated, system-level solutions that enhance performance, scalability, and cost efficiency for customers globally.

The company indicated that it intends to retain Kinetic Technologies’ current leadership and engineering teams, who will continue to operate under the current structure while aligning with the strategic direction and board oversight of Cyient Semiconductors.

Cyient Semiconductors CEO Suman Narayan said: “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.

“This will help shorten development cycles and scaling our ability to solve the toughest power, thermal, and reliability problems in high volume systems.”

The transaction remains subject to standard closing conditions and is expected to conclude in the coming months.