KPIT Cummins has inked an alliance with Hubli-based Sankalp Semiconductor Pvt. Ltd. a provider of analog and mixed-signal semiconductor solutions and services.
The deal, which involves no cash transaction, includes business and technology transfer of KPIT’s semiconductor hardware business. A new company, Sankalp & KPIT Semiconductor Pvt. Limited, a wholly owned subsidiary of Sankalp, has been formed for this business stream.
Also as part of this deal, KPIT Cummins has taken a 15 per cent stake in the parent company and will get one seat on the Sankalp Board.
“With this strategic transaction Sankalp Semiconductor now has a large design capacity and a strong base of qualified semiconductor design specialists. This will enable us to offer our customers highly scalable and best-in-class semiconductor design services,” Mr Vivek Pawar, CEO, Sankalp Semiconductors said.
“Semiconductor design competency is key to KPIT Cummins’ product engineering services portfolio. With this our joint customers will get access to one of the largest semiconductor hardware design practices and superior Analog & Mixed Signal design (AMS) expertise,” Mr Pankaj Sathe, Senior Vice President and Head Semiconductor Solutions Group, KPIT Cummins said.
He estimated that new alliance will have an indirect impact to the tune of $ 15-20 million in revenue during this fiscal.
The new entity will be one of the world’s largest Analog & Mixed Signal (AMS) design services provider, with best-in-class end-to-end SoC (Systems on Chip) design capabilities, catering to top North American, European and Japanese semiconductor companies and their captive centers in India, with primary focus on automotive, consumer electronics, and computing and communications industries.