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Blue Cloud Softech Solutions Limited, a provider of AI-driven enterprise and cybersecurity solutions, has signed a Technology Ownership Transfer (ToT) Agreement valued at approximately USD 150 million with an Israel-based technology company to jointly develop edgeAI chips, advanced semiconductor systems designed to power the next generation of Artificial Intelligence of Things (AIoT) and industrial automation applications.
The agreement encompasses a five-year strategic investment plan by Blue Cloud Softech Solutions Limited (BCSSL) covering technology integration, product development, and manufacturing setup in India. It also includes a revenue-sharing arrangement with the Israeli partner for hardware design transfer and intellectual property (IP) rights.
Under this partnership, the Israeli company will contribute the core hardware architecture and reference design, while BCSSL will develop and own the complete software stack, including system firmware, AI middleware, and application frameworks. This structure ensures full technology ownership and IP control in India, strengthening the country’s capabilities in advanced semiconductor development.
Strengthening India’s semiconductor ecosystem
The collaboration represents a significant step towards expanding India’s indigenous semiconductor manufacturing ecosystem and aligns closely with the Government of India’s Aatma Nirbhar Bharat (Self-Reliant India) initiative. BCSSL is currently in advanced discussions with leading Indian semiconductor manufacturers to produce these chips domestically, enabling large-scale, end-to-end local fabrication and reducing dependency on external supply chains.
The initiative will also support BCSSL’s ongoing USD 15 million partnership with Byte Eclipse, which focuses on integrating Edge AI chips into the oil and gas sector. Additionally, the company plans to deploy this technology across other high-impact domains, including defence, energy, and industrial AIoT applications.
Technical overview of the edgeAI chip
The edgeAI semiconductor platform is designed for high-performance edge computing in industrial and defence-grade environments. It supports real-time intelligence and secure data processing close to the source, reducing latency and enhancing operational efficiency.
The edgeAI chip is designed with a multi-core hybrid System-on-Chip (SoC) architecture that integrates ARM Cortex-A series processors and vector DSP cores, delivering a powerful balance of processing performance and energy efficiency. It features an integrated Neural Processing Unit (NPU) capable of up to 32 Tera Operations Per Second (TOPS), optimised for deep learning inference directly at the network edge. The chip supports LPDDR5/DDR5 memory with a throughput of up to 68 GB/s, ensuring high-speed data access and smooth handling of AI workloads.
In terms of connectivity, the platform offers dual 10G Ethernet, 5G NR, Wi-Fi 6E, and Time-Sensitive Networking (TSN) to enable high-speed, low-latency communication suitable for industrial environments. Security is embedded at the hardware level, featuring AES-256 encryption, TPM 2.0, Secure Boot, and continuous firmware integrity monitoring. An AI-based adaptive defence agent provides real-time anomaly detection and perimeter protection, enhancing cyber resilience.
The chip’s low-power design, operating at under 10W TDP, makes it suitable for remote and energy-constrained environments. Its MIL-grade ruggedisation allows reliable operation across extreme temperatures ranging from –40°C to +105°C, ensuring performance in challenging industrial and defence scenarios. Additionally, it offers native compatibility with SCADA, PLC, and industrial robotics communication systems, enabling seamless integration into existing automation frameworks.
This edgeAI chip forms the foundation of BCSSL’s Edge-AI ecosystem, supporting real-time decision-making, bandwidth optimisation, and improved data sovereignty at the network edge, critical enablers for autonomous industrial and defence solutions.
Strategic vision and future plans
The Technology Ownership Transfer marks an important milestone in BCSSL’s roadmap to establish indigenous semiconductor and AI hardware capabilities. It enhances India’s participation in the global semiconductor value chain by ensuring that both design and software development remain under domestic control.
The five-year investment plan also covers R&D expansion, infrastructure development, and collaboration with Indian manufacturing partners for pilot and commercial-scale production. The project is expected to contribute directly to the Aatma Nirbhar Bharat initiative by promoting domestic innovation, advanced manufacturing, and high-value exports in semiconductor technology.
Janaki Yarlagadda, Chairman, Blue Cloud Softech Solutions Limited stated, “The signing of this USD 150 million ToT agreement with our Israeli partner represents a defining step in Blue Cloud Softech’s journey towards building India’s sovereign semiconductor capability. This initiative localises the entire technology stack, from silicon design to firmware development, and reinforces our commitment to India’s vision of self-reliance in advanced technology.
He further added, “By combining Israel’s proven expertise in semiconductor design with Blue Cloud Softech’s strengths in AI software, we are developing a world-class edgeAI platform capable of supporting industrial, defence, and critical infrastructure applications across global markets. This collaboration extends beyond existing projects, such as our partnership with Byte Eclipse, and positions us as a key participant in semiconductor innovation, AI hardware development, and advanced technology manufacturing.”