Hyderabad: Blue Cloud Softech Solutions Ltd. (BCSSL) (BSE: 539607) has signed a Memorandum of Understanding (MoU) with ConnectM Technology Solutions Pvt Ltd to jointly develop a semiconductor-based EdgeAI SoC aimed at next-generation automotive cybersecurity applications.
Under the MoU, BCSSL will lead the architecture, design, and development of an advanced EdgeAI SoC, integrating real-time threat detection, intrusion prevention, and continuous security management capabilities.
The semiconductor platform is being designed for deployment across Telematics Control Units (TCUs), Vehicle Control Units (VCUs), and other mission-critical electronic modules used in electric, connected, and software-defined vehicles.
The collaboration marks a strategic expansion of BCSSL into automotive semiconductor development, combining its expertise in cybersecurity software, artificial intelligence, and secure systems with ConnectM’s capabilities in automotive-grade hardware engineering, diagnostics, and OEM integration.
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MoU to Drive EdgeAI SoC Development for Automotive Cybersecurity
The EdgeAI SoC will be exclusively customized for ConnectM’s onboard automotive hardware platforms, while BCSSL will retain ownership of the core intellectual property related to the semiconductor architecture and cybersecurity technologies.
As per the MoU, the partners have agreed to a revenue-sharing arrangement with a 50:50 split of net revenues generated from joint commercialization, after applicable costs and taxes.
Subject to the execution of definitive agreements, the collaboration is projected to generate a business volume of approximately USD 50 million over a five-year period from 2026 to 2030.
The jointly developed EdgeAI SoC solutions will be engineered in compliance with global automotive safety and cybersecurity standards, including ISO/SAE 21434 for road vehicle cybersecurity, UNECE WP.29 regulations R155 and R156, ISO 26262 for functional safety, along with other relevant international and Indian regulatory requirements.
This ensures that the semiconductor platforms are production-ready, certifiable, and suitable for deployment across global automotive markets.
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EdgeAI SoC Designed to Meet Global Automotive Safety and Cybersecurity Standards
Strategically, the MoU positions both companies to deliver secure, scalable, and automotive-grade semiconductor solutions that address the growing cybersecurity challenges associated with electric and connected vehicles.
By accelerating time-to-market and enabling OEM-ready deployments, the partnership aims to strengthen cybersecurity resilience across the evolving mobility ecosystem.
Commenting on the MoU, Tejesh Kumar Kodali, Group Chairman, said that the semiconductor development partnership represents a significant milestone for Blue Cloud Softech Solutions as it expands into EdgeAI SoC platforms for automotive cybersecurity.
He noted that the collaboration brings together advanced cybersecurity intelligence and automotive-grade hardware to build secure, future-ready solutions aligned with the requirements of next-generation mobility.
