Semiconductor Manufacturing: Hyderabad IT Firm To Develop AI Chips With US Partner

Blue Cloud Softech Solutions signed a $15 million (Rs 132 crore) MoU with Byte Eclipse to design and develop Edge AI Chips.

Phase one of the Blue Cloud Softech-Byte Eclipse project is expected to be completed within 18 months. (Image: Envato)

Blue Cloud Softech Solutions Ltd., a Hyderabad-based small-cap IT company, will design and develop Edge AI chips in partnership with an American firm.

The company signed a $15 million (Rs 132 crore) Memorandum of Understanding with Byte Eclipse to design and develop Edge AI Chips tailored for the Oil & Gas industry, according to a statement issued on Wednesday.

Phase one of the project is expected to be completed within 18 months, with future phases planned for scaling the solution globally, the company said.

Byte Eclipse is a US-based Internet of Things solutions provider specialising in advanced IoT hardware and AI-driven analytics platforms.

Blue Cloud Softech has expertise spanning cybersecurity, cloud computing, and digital transformation.

Also Read: ‘Chips To Ships’: PM Modi Pushes For Domestic Manufacturing In Critical Industries

What Are Edge AI Chips

Edge AI chips are specialised processors designed to run artificial intelligence tasks locally on devices at the "edge" of a network, near the data source, instead of sending data to a remote cloud server.

The chips will enable real-time, on-site data processing and decision-making for mission-critical applications like Predictive Maintenance (PdM). It has high computational power, designed to perform Tera Operations Per Second (TOPS) for real-time AI inference.

This will allow chips will process large volumes of sensor data locally, providing instantaneous insights into critical parameters such as vibration, temperature, and pressure. This enables immediate anomaly detection and automated responses to prevent downtime and catastrophic failures, Blue Cloud Softech said.

By processing raw data on-site and transmitting only actionable insights to the cloud, the solution will reduce bandwidth usage, lower transmission costs, and optimise operational efficiency, the company said.

In India, the industrial AIoT market is expected to surpass $1 billion by 2027, driven by the adoption of AI and IoT technologies across critical sectors like Oil & Gas.

The government has been pushing for local design and manufacturing of advanced semiconductors to cut reliance on imports. The 'India Semiconductor Mission' has been provided an outlay of Rs 76,000 crore.

This year, India inaugurated its first centres for advanced 3-nanometer chip design in Noida and Bengaluru.

Also Read: Reliance Intelligence And Meta Partner For AI Joint Venture With 70:30 Stake

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WRITTEN BY
Shubhayan Bhattacharya
Shubhayan covers markets and business news at NDTV Profit. He has a keen in... more
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