India’s semiconductor ambitions just took a decisive step forward. Cyient Ltd, in partnership with its investee startup Azimuth AI, is preparing to supply a locally patented 40-nanometre system-on-chip (SoC) for smart electricity meters—an achievement that reflects not only technological prowess but also the country’s growing momentum toward electronics self-reliance. With commercial deployment expected by June 2026, this chip represents a crucial milestone for India’s semiconductor ecosystem.

A Two-Year Journey to a Landmark Chip

Developed over two years with an investment of ₹150 crore, Azimuth AI’s SoC is one of the first privately designed and commercialized industrial SoCs to emerge from India. This compact yet powerful chip integrates all the critical components of an electronic processing system onto a single substrate, enabling smarter, more efficient devices.

Azimuth’s cofounder and chief growth officer, Sridevi Badiga, notes that clients using this chipset can expect 20–30% local value addition, a significant boost in a sector historically dependent on imports. The chip is production-ready today, with final integration tests underway to ensure flawless compatibility with upcoming smart meter deployments.

By June 2026, these highly localized smart meters are expected to begin rolling out across markets.

Targeting a $29 Billion Global Market

Cyient has set its sights high. In a March update, the company announced its ambition to tap into the $29-billion global smart meter market, where demand for reliable, secure, and energy-efficient solutions is accelerating worldwide.

The partnership with Azimuth positions Cyient among a growing cohort of Indian players—alongside innovators like Mindgrove Technologies—who are building industrial-grade semiconductor IP from scratch. Their timing aligns neatly with India’s heightened focus on strengthening domestic chip design and manufacturing capabilities.

Designed in India, Built for the World

Cyient’s executive vice-chairman and managing director, Krishna Bodanapu, emphasizes the reusability of design IP as a core strategy. Roughly 70% of a patented chipset’s design can be reused for new, sector-specific variations.

Today the focus is smart meters. Tomorrow?

• Power systems
• Space-tech applications
• Battery management
• Mission-critical industrial devices

These are sectors where hardware security and supply chain independence are crucial, and where Cyient intends to build a broad, indigenously owned semiconductor portfolio.

Scaling India’s Semiconductor Workforce

Cyient currently employs 600 semiconductor engineers and designers, including 200 stationed abroad. This talent pool is central to the company’s vision of building a suite of made-in-India chips tailored for diverse global applications.

Their earlier investment—a 27.3% stake in Azimuth AI for $7.5 million—was followed by the creation of Cyient Semiconductor, a wholly owned subsidiary tasked with advancing the firm’s semiconductor ambitions.

The broader industry is also taking notice. India’s IT minister Ashwini Vaishnaw recently revealed that 30 more chips similar to Azimuth’s are expected to emerge from Indian enterprises soon, signaling strong momentum in the domestic design pipeline.

Government Incentives: A Work in Progress

Interestingly, this breakthrough chip from Azimuth and Cyient was developed without government design or production incentives. While the companies are in discussions with the Centre about future support, the SoC itself stands as evidence of private enterprise driving innovation independently.

Recent developments include:

• A proposed $4-billion incentives package for electronics components and semiconductor-related sectors
• A $2.7-billion scheme launched on May 1 to boost local component manufacturing
• Ongoing evaluation of chip design incentives under the upcoming India Semiconductor Mission (ISM) – Tranche 2

As these policies mature, India’s semiconductor design ecosystem is poised to gain even more traction.

The Road Ahead: Toward a Self-Reliant Chip Ecosystem

The story of Cyient and Azimuth’s 40 nm SoC is more than a corporate milestone—it’s a reflection of India’s evolving role in the global semiconductor landscape. The country is transitioning from a market that primarily imports electronic components to one that designs, patents, and produces its own.

With private companies stepping up, government policy aligning, and demand for smart, secure industrial hardware rising globally, India’s semiconductor narrative is gaining clarity and confidence.

Takeaways

• Cyient and Azimuth AI have developed a patented 40 nm SoC for smart electricity meters, with deployment set for June 2026.
• The chip offers 20–30% local value addition, supporting India’s electronics self-reliance goals.
• Cyient is targeting the $29-billion global smart meter market and building a broader portfolio of indigenous chips.
• The initiative was achieved without government incentives, highlighting the strength of India’s private innovation ecosystem.
• With more chips expected from Indian enterprises, the nation’s semiconductor story is entering a promising new chapter.

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