Polymatech recently collaborated with Orbray, a Japanese company, and signed an agreement. This leading Indian manufacturer of opto-semiconductors and chip modules is now venturing into wafer fabrication.
They joined hands with Orbray to become a fully integrated semiconductor company.
What is the MoU signed between Polymatech and Orbray?
Under the MoU, Orbray Co. will supply sapphire ingot growing technologies to Polymatech Electronics. This step is important and will help Polymatech Electronics in achieving its vision of becoming a fully integrated end-to-end semiconductor company. The company has finalized the procurement of sapphire ingot growing and wafer fabrication machinery, planned to be installed at Polymatech by March 2025. Orbray will also provide training to Polymatech engineers at their facility in Japan.
This partnership will prove to be a significant step in growing the company. It will drive innovation and open up new avenues for technological advancement.
Who is the Orbray?
Orbray, a Japanese company renowned as a leading manufacturer of precision components, specializes in optical fiber components, sapphire wafers, and micro-motors. Previously known as Adamant Namiki Precision Jewel, the company boasts 85 years of rich legacy in the market. Over the years, Orbray has established itself as a global name, with its manufacturing plants strategically located across the globe.
The business model of Polymatech
Polymatech, headquartered in Chennai, is the only company in India engaged in designing, manufacturing, packaging, and assembling opto-semiconductors and chip modules. These are used for diverse applications ranging from medical lighting to large-area lighting, cell phone backlights, etc. Operating from its facility in Oragadam, Tamil Nadu, Polymatech boasts a production capacity of around two billion opto-semiconductor chips.
What does Polymatech envision in the next 5 years?
Polymatech Electronics is set to venture into sapphire wafer fabrication, with a focus on utilising the produced wafers mainly for its own needs. The excess capacity will be directed toward serving companies entering the Indian market, particularly those in packaging and other semiconductor-related units.
This strategic move aligns with Polymatech's goal of becoming a fully integrated semiconductor company. The MD and CEO, Eswara Rao Nandam, expressed his enthusiasm about this move and emphasised the importance of this step in expanding the company into new horizons.
Polymatech also seeks a capital subsidy from the central government to support this ambitious wafer fabrication project. This initiative shows Polymatech's commitment to innovation and expansion, as it works to make significant progress in the semiconductor industry.
In fiscal year 2023-24, the company achieved significant export revenues exceeding $125 million. This shows Polymatech's strong presence in both domestic and international markets, solidifying its position as a key player in the semiconductor industry.
Polymatech is actively engaged in discussions with suppliers of silicon carbide and silicon wafer fabrication machinery. These discussions aim to speed up the company's plans to diversify into multi-wafer production. As part of its broader initiative to manufacture high-end semiconductor chips, Polymatech intends to supply these wafers to businesses operating in various sectors in India. The company has a lot to achieve in the near future.
How’s Polymatech share price performing?
The company plans to issue its IPO by the end of the year. It aims to raise Rs.1,500 crore from the upcoming IPO, which is double the valuation filed in its draft prospectus in October 2023. However, investors can still invest in the unlisted shares of Polymatech. The company is experiencing an upward trend in the unlisted share market. After the strategic partnership with Orbray, the Polymatech share prices are expected to rise further.
Is Polymatech worth the investment?
With its continuous expansion and diversification efforts, Polymatech appears to be a promising investment opportunity. With its recent collaboration with Orbray, the company is prepared for positive growth. The upcoming IPO, expected by the end of the year with a promising valuation, adds to the attractiveness of investing in Polymatech. Investors should perk their funds into the unlisted shares of Polymatech to potentially gain significant profits shortly.
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