Hardware
Cisco sells set-top-box biz to Technicolor for $600 million
MUMBAI: Cisco has sold its set-top-box (STB) business to Technicolor for $600 million in a cash and stock transaction.
The board of directors of the two companies will review the deal, which will be on a cash free, debt free basis.
Under the terms of the agreement, upon the closing of the transaction, Cisco will receive approximately $450 million in cash and approximately $150 million in newly issued Technicolor shares, subject to certain adjustments provided for in the agreement.
The acquisition should result in Technicolor’s connected home segment reaching adjusted EBITDA in excess of $219 million by year end 2016 and best-in-class profitability by 2017. The transaction will also translate into double-digit EPS accretion at Group level starting in the first full year after closing.
Simultaneously to the acquisition, Technicolor and Cisco will enter into a strategic partnership that will allow both companies to develop and deliver next generation video and broadband technologies, with cooperation on Internet of Things (IoT) solutions and services. The strategic agreement will provide ongoing commitment to all existing customers and expand offerings.
By combining their strengths and leading video expertise, from content creation to in-home delivery, the two companies will accelerate innovation and forge a leading entity that network service providers can rely on for their next generation connected home experiences.
Technicolor and Cisco also have signed a long-term patent cross-licensing agreement that covers specific intellectual property and patents from both companies. As part of the deal and after the transaction has closed of Cisco senior vice president and chief strategy officer Hilton Romanski, will join Technicolor’s Board of Directors.
Technicolor CEO Frederic Rose said, “We know that video expertise is essential to the future of creating outstanding network and home infrastructure products and services. Through this acquisition and strategic agreement, Technicolor can immediately bring its unrivalled experience and innovation in video creation, delivery, and display to more customers in more geographies, while strengthening our position as a technology leader.”
“The strategic relevance of video to every consumer, business, city and country around the world is only growing, and the market is moving rapidly. This is the right time and we have the right company in Technicolor to drive the future of the CPE business to deliver what our customers and partners need, today and into the future. At Cisco, we are prioritizing our investments to deliver on our strategy of video in the cloud, and will partner with Technicolor to position the CPE business and employees for future success,” added Cisco CEO and chairman John Chambers.
The $452 million cash portion of the consideration will be financed through cash-on-hand and fully-underwritten new debt with an anticipated limited impact on Technicolor’s leverage position.
Hardware
India clears Rs 1.6 lakh crore semiconductor projects under Semicon India
Ten projects cleared as production begins and design ecosystem gathers pace
NEW DELHI: India’s push to become a global electronics powerhouse is gaining momentum, with the Semicon India Programme driving the creation of a full-fledged semiconductor ecosystem from design to manufacturing.
Launched in 2022, the programme aims to build capabilities across the entire value chain, including chip design, fabrication, assembly, testing and packaging. In just four years, the government has approved 10 semiconductor projects with a combined investment commitment of around Rs 1.6 lakh crore.
Two of these facilities have already begun commercial production, including units led by Micron Technology Inc. and Kaynes Technology India Limited. Two more plants are expected to go live later this year, signalling that India’s chip ambitions are moving from blueprint to factory floor.
The broader electronics manufacturing story has also seen sharp growth over the past decade. Production has jumped from roughly Rs 1.9 lakh crore in 2014-15 to about Rs 12 lakh crore in 2024-25, while exports have surged nearly eightfold. Mobile phone manufacturing, once heavily import-dependent, now meets almost all domestic demand and has become a major export driver.
Alongside manufacturing, the government is investing heavily in design capabilities. Through access to advanced chip design tools provided free to 315 universities, students and researchers have clocked over 200 lakh hours of usage. This effort has already resulted in 211 chip tape-outs from 75 institutions.
Support for startups is also picking up pace. Twenty-four chip design projects have been approved, targeting sectors such as surveillance, energy, communications and IoT. Of these, 14 companies have collectively raised over Rs 650 crore in venture funding, while several designs have progressed to fabrication, including at advanced nodes.
To strengthen supply chains, India has also signed semiconductor cooperation agreements with countries including the United States, Japan, the European Union, Singapore and the Netherlands. These partnerships aim to reduce global dependencies while boosting domestic capabilities.
The employment impact is equally significant. The electronics sector now supports an estimated 25 lakh jobs, with mobile manufacturing alone accounting for nearly half. As more semiconductor units come online under the India Semiconductor Mission, indirect job creation across supply chains is expected to rise further.
Sharing these updates in Parliament, Ministry of Electronics and Information Technology minister of state Jitin Prasada underscored the government’s focus on building a resilient, end-to-end semiconductor ecosystem.
With factories taking shape, designs moving to silicon and investments flowing in, India’s semiconductor story is steadily shifting gears from ambition to execution.
