Blue Cloud Softech surges after $150 mn ToT deal with Israel-based tech entity

As per the agreement, the company would co-develop edge-AI chip hardware design and manufacture semiconductors in India.

The Israel-based semiconductor design company, which is the partner firm in this agreement, specializes in edge computing architectures and AI accelerator designs. It has a strong track record in delivering ASIC (application-specific integrated circuit) and high-efficiency embedded hardware solutions for automation, communication, and defense sectors.

The agreement includes a five-year strategic investment plan by Blue Cloud Softech Solutions (BCSSL) covering technology integration, product development, and manufacturing setup in India, along with revenue sharing to the Israel technology partner for hardware design transfer and intellectual property rights.

Under this ToT partnership, the Israel firm will provide the core hardware architecture and reference design, while BCSSL will own and develop the entire software stack, including system firmware, AI middleware, and application frameworks, thereby solidifying complete technology ownership and intellectual property control on Indian soil.

BCSSL is presently in advanced discussions with leading Indian semiconductor manufacturing companies to fabricate these chips domestically, ensuring large-scale, end-to-end local production.

The initiative will not only fulfill the company?s existing $15 million collaboration with Byte Eclipse for edge-AI chip integration in the Oil & Gas sector but also address several similar industrial projects currently in the pipeline across defense, energy, and industrial AIoT domains.

Janaki Yarlagadda, chairman, Blue Cloud Softech Solutions, said: ?By merging Israel?s globally recognized excellence in chip design with BCSSL?s leadership in AI software, we are creating a world-class edgeAI semiconductor platform that will serve industrial, defense, and critical infrastructure needs across continents.

This partnership extends our footprint beyond existing contracts like Byte Eclipse and paves the way for BCSSL to become a central player in semiconductor innovation, AI hardware integration, and global technology manufacturing.

Blue Cloud Softech Solutions is a AI & Cybersecurity company focused on delivering innovative IT and IT-enabled services across global markets, with a strong foundation in cloud computing, artificial intelligence, data analytics, cybersecurity, and enterprise solutions. The company's consolidated net profit rose 37.31% to Rs 14.39 crore despite a 10.89% decline fall in revenue to Rs 206.05 crore in Q1 FY26 as compared with Q1 FY25.

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