Blue Cloud Softech Signs USD 150 Million ToT Deal with Israel Firm to Develop Edge-AI Chips in India
Strategic partnership with Israeli firm positions BCSSL as a key player in indigenous semiconductor innovation aligned with Aatma Nirbhar Bharat
Blue Cloud Softech Solutions Limited (BSE: 539607), a leading AI-driven enterprise and cybersecurity solutions provider, has announced a landmark Technology Ownership Transfer (ToT) agreement valued at approximately USD 150 million with an Israel-based technology firm. The deal marks a pivotal step in India’s journey toward self-reliance in semiconductor manufacturing and advanced AI hardware integration.
The five-year strategic partnership includes technology integration, product development, and manufacturing setup in India, with revenue-sharing provisions for hardware design transfer and intellectual property rights. Under the agreement, the Israeli partner will contribute the core hardware architecture and reference design, while BCSSL will take full ownership of the software stack—developing system firmware, AI middleware, and application frameworks. This ensures complete technology control and IP localization on Indian soil.
The collaboration is a direct response to the Government of India’s “Aatma Nirbhar Bharat” vision, aiming to strengthen domestic capabilities in semiconductor design and fabrication. BCSSL is currently in advanced talks with leading Indian semiconductor manufacturers to fabricate the chips locally, ensuring end-to-end indigenous production.
The EdgeAI chips developed under this initiative are designed to power next-generation AIoT (Artificial Intelligence of Things) and industrial automation applications. These chips will support real-time intelligence, secure data processing, and low-latency decision-making at the network edge—critical for autonomous systems in defense, energy, and industrial sectors.
This ToT agreement also complements BCSSL’s existing USD 15 million collaboration with Byte Eclipse, focused on EdgeAI chip integration in the oil and gas sector. The new platform will extend BCSSL’s capabilities across multiple verticals, including defense-grade environments and mission-critical infrastructure.
Chairman Janaki Yarlagadda described the deal as a defining moment for BCSSL: “This initiative not only localizes the entire technology stack—from silicon design to firmware development—but also symbolizes our deep commitment to the vision of Aatma Nirbhar Bharat. By merging Israel’s excellence in chip design with BCSSL’s AI software leadership, we are creating a world-class edgeAI semiconductor platform.”
The EdgeAI chip architecture is built to deliver high-performance edge computing, enabling bandwidth optimization, data sovereignty, and secure processing closer to the source. These features are essential for industries that require autonomous decision-making, minimal latency, and robust cybersecurity.
Founded in 1991, BCSSL has evolved into a global technology player with operations across India, the United States, the United Kingdom, the UAE, Israel, France, Singapore, and Tanzania. The company specializes in AIoT, digital transformation, industrial automation, and secure computing, serving clients in enterprise, defense, and critical infrastructure domains.
The USD 150 million investment will be deployed over five years, supporting R&D, product engineering, and manufacturing infrastructure. It positions BCSSL as a central player in India’s emerging semiconductor ecosystem and reinforces its role in shaping the future of AI hardware innovation.
Industry analysts view this move as a strategic leap for India’s tech sector, especially as global supply chains pivot toward regional resilience and IP sovereignty. With this partnership, BCSSL is not only advancing its technological frontier but also contributing to India’s ambition to become a global hub for semiconductor design and manufacturing.
