Polymatech Electronics: ₹1,500 Crore IPO for Semiconductor Expansion

Tanushree Jaiswal Tanushree Jaiswal 12th April 2024 - 03:51 pm
Listen icon

Polymatech Electronics, prominent semiconductor chip manufacturer based in Chennai, is gearing up for significant financial move with plans to launch₹1,500 cr initial public offering (IPO) by end of year. This IPO, double size initially envisaged, signifies company’s ambitious expansion strategy in semiconductor industry. Chief Executive & Managing Director, EswarRao Nandam, shed light on company's vision & strategic partnerships in recent interview. Revenue surged from ₹650 crore in FY23 to ₹1,200 crore in FY24, expecting further growth. Plans include expanding chip capacity to 20 billion units, investing $5 billion over six years. Seeks incentives from central & state governments for semiconductor units. MoU with Japanese firm Orbray for sapphire ingot growing tech. Vision: Fully integrated semiconductor company. Engages in talks for overseas assembly units.

Expansion Plans & Strategic Partnerships:

Polymatech aims to scale up its chip production capacity to 20 billion units over six years, significant leap from its current capacity of 2 billion units annually. To achieve this ambitious goal, company plans to invest $5 billion in various initiatives, including expanding chip packaging capacity & setting up wafer fabrication & packaging plants.

In addition to internal accruals, portion of $5 billion investment will be sourced from proceeds of IPO. Polymatech also intends to leverage financial incentive schemes offered by both central & state governments for semiconductor units. Notably, central government has established $10 billion fund to support chip manufacturing initiatives in India, offering lucrative incentives to eligible companies.

Polymatech Electronics has set tremendous for extensive $5 bn expansion plan to transform into comprehensive semiconductor manufacturing entity. Memorandum of Understanding (MoU) with Japanese Firm Orbray Co. Ltd marks pivotal step towards this transformation. Partnership excessively involves training for Polymatech Electronics engineers at Orbray's cutting-edge facility in Japan as well as. Additionally, not only procurement of sapphire in got growing but also wafer fabrication machinery signifies company’s commitment to enhancing its manufacturing capabilities, scheduled for installation by March 2025 at its Chennai facility.

Advancements in Semiconductor Technology:

collaboration with Orbray, renowned for its expertise in not only optical fibre components but also micro-motors, underscores Polymatech Electronics' endeavour towards diversifying its semiconductor offerings. With focus importantly on opto-semiconductor chips that can emit or detect light, company aims in order to cater to not only wide array of applications, including medical devices, agriculture, lighting, but also consumer electronics. This strategic move incredibly aligns with company's aspiration to become end-to-end semiconductor solutions provider.

Current Operations & Export Ventures:

Having been India's sole developer, producer, & packager of opto-semiconductor chips since 2019, Polymatech Electronics has garnered very strong foothold in market. With burgeoning clientele spanning regions like US, EU, & MEN countries, company boasts robust production capacity of 2,000 mn chips. Notably, its export revenue surpassed largely $125 mn in fiscal year 2023-24, underlining its really significant contribution to India's semiconductor exports.

Government Collaborations & Subsidy Initiatives:

To support its ambitious expansion plans, Polymatech Electronics has engaged in collaborative efforts with both central & state governments. Company have previously signed MoU with Government of Tamil Nadu & intends itself to seek capital subsidies under applicable schemes. Also, furthermore, advanced discussions with Silicon Carbide Wafer & Silicon Wafer fabrication machinery suppliers highlight company's commitment to enhancing its semiconductor manufacturing capabilities.

To Summarize:

Polymatech Electronics' forthcoming IPO & expansion endeavors highly underscore its strategic vision to emerge as leading player in semiconductor industry. With focus largely on technological innovation, strategic partnerships, & government collaborations, company is certainly poised are for significant growth & global recognition in semiconductor domain!

How do you rate this article?

Characters remaining (1500)

Disclaimer: Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

Get 100 trades FREE* with the code "FREEPACK"
Resend OTP
Please Enter OTP
By Proceeding, you agree T&C*
Mobile No. belongs to

IPOs Related Articles

Quest Laboratories IPO Subscri...

by Tanushree Jaiswal 18/05/2024

Go Digit General Insurance Sub...

by Tanushree Jaiswal 17/05/2024

Piotex Industries IPO: Lists 1...

by Tanushree Jaiswal 17/05/2024

Aztec Fluids & Machinery IPO: ...

by Tanushree Jaiswal 17/05/2024

Premier Roadlines IPO: Lists 2...

by Tanushree Jaiswal 17/05/2024