Polymatech Setting Up Second Semi Conductor Plant In Chattisgarh

Polymatech Electronics is expanding. The semiconductor company announced the establishment of its second plant in India, located in Nava Raipur, Chhattisgarh, as reported by Manufacturing Today India. The new facility, supported by a 40% capital subsidy from the state, will focus on producing advanced semiconductor chips and base stations for the rapidly advancing 5G and 6G technologies.

The announcement came during the Chhattisgarh Investor Connect 2024 event in New Delhi, with Chhattisgarh’s Chief Minister, Vishnu Deo Sai, highlighting the importance of the facility in enhancing the state’s manufacturing capabilities. With a significant investment of ₹1,143 crore, this project aims to strengthen India’s semiconductor and telecommunications ecosystem.

International Tech Collaboration

Polymatech’s new plant will specialise in producing gallium nitride (GaN) semiconductor chips, a technology crucial for high-frequency 5G and 6G communications. These chips will be used in the base stations that are central to next-generation telecom infrastructure. The plant will also incorporate advanced packaging for these chips, with initial fabrications being outsourced until Polymatech’s foundry in Grenoble, France, becomes operational.

The collaboration with Simply RF, a company based in Cardiff, UK, is expected to boost India’s capabilities in global semiconductor manufacturing. The Chhattisgarh government’s support further solidifies the state as a hub for technological innovation, with policies designed to attract high-tech manufacturing investments.

MD Eswara Rao's Statement

Eswara Rao Nandam, CEO and Managing Director of Polymatech, expressed enthusiasm about the project. “The establishment of our second facility in India aligns with our goal to advance the country’s technological prowess in semiconductor and telecom manufacturing. With Chhattisgarh’s support and our expertise in GaN technology, we are poised to deliver next-gen solutions for the global 5G and 6G ecosystem,” he stated.

Polymatech's Efforts in the Semiconductor Industry

Polymatech’s investment in the new plant reflects a significant step towards enhancing India’s semiconductor manufacturing capabilities, especially in 5G and 6G base station technologies. The company’s commitment to incorporating advanced GaN technology will improve the efficiency and performance of telecommunication infrastructure, driving the country’s digital transformation.

Chhattisgarh’s proactive industrial policies have been instrumental in attracting this investment. Vishnu Deo Sai, Chief Minister of Chhattisgarh, praised Polymatech’s decision to set up its second facility in the state, underscoring the positive impact on the state’s manufacturing ecosystem and the nation’s semiconductor sector.

Make In India Vision Of Polymatech

Polymatech’s expansion also supports India’s vision of self-reliance in high-tech manufacturing, further contributing to the growth of advanced communication technologies and the country’s move towards a robust digital economy. With the support of Chhattisgarh’s forward-looking policies, Polymatech’s new facility is set to play a crucial role in shaping the future of telecommunications and semiconductor industries in India.

Polymatech Electronics, with its operations in India, the US, and Bahrain, continues to play a vital role in the global semiconductor and electronics industry, catering to sectors ranging from telecommunications to AI and healthcare.

Polymatech Recent Financial Highlights

The company is in a robust financial position even before its planned expansion, as evidenced by the following factors.

• The company has a robust order book totalling Rs. 7,000 crores. All these orders are for exports and are scheduled to be executed over the next two years.

• In FY24, the company’s revenue surged by 85% year-on-year, reaching Rs. 1,200 crores.

• During the same period, net profit increased by 64%, amounting to Rs. 275 crores.

• The company has a current capacity of 2 billion chips.

This highlights a direct positive indicator for the growth of the Polymatech unlisted share price.

Future Plans of Polymatech

The company is banking on several key factors to drive its revenue growth, including the rising demand for energy-efficient lighting solutions such as LEDs in the automotive, consumer electronics, and infrastructure sectors. Additionally, the company is seeing increased demand for semiconductor solutions in medical applications and horticulture.

Polymatech charts a course to $2.5 billion in revenue by FY26 through the below strategic plan:

• Capacity Expansion: New machinery for ingot manufacturing and wafer fabrication will increase chip production capacity to 10 billion chips by next year.

• Projected Efficiency: They anticipate achieving 50-60% efficiency, translating to a production output of 5-6 billion chips annually.

• Revenue Projection: Estimating revenue of $0.5-0.6 per chip from high-end products.

• Targeted Revenue: The company aims to achieve a $2.5 billion revenue milestone by March 2026.

Is Polymatech a good buy?

Polymatech Share Price Chart

Till the first half of 2024, the Polymatech share price was trading at around Rs 180 per share. Post June, the share began drifting down to Rs 120-140 per share. Currently, the Polymatech Electronics share share price is Rs 61 per share, possibly due to the 1:5 share split.

With the recent expansion of semiconductor plants and a growing financial base, Polymatech Shares can be a good buy. However, investors must carry out their own research before investing in unlisted pre-IPO shares. Click here to check the top unlisted shares price list.

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