Tamil Nadu-based semiconductor chip manufacturer Polymatech has announced a $1 billion investment into its manufacturing operations. The proposed investment will be made for improved integration of its currently manufactured products as well as for expanding its lines to include product currently being imported into the country.
Nandam Eswara Rao, Founding President, Polymatech Electronics said, “We recognise the immense scope of growth in the industry. As players at the forefront, we wish to expand our business and create value in the market. With a team made of the best global minds in tech and our investment in the business, we are sure to be able to capitalise on the industry’s potential and scale the semiconductor market in India. We plan to be one of the largest chip manufacturers in Asia by 2025.”
The company says the new investments will be used to improve the forward and backward integration of its existing product line while also Indianising several products that are currently only imported into the country.
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The company said that it has already signed an MoU with the Tamil Nadu government for an investment of $ 130 million with the company already having imported required machinery to boost production. The company says that it has already completed all required trials for the machinery at its plant with products expected to hit the market in the coming weeks. The new machinery gives the manufacturer the capacity to manufacture 250 million chips annually. The firm has also acquired land for a second plant with construction to commence soon.
Semiconductors are used in a vast variety of products including automobiles. The auto industry was hit by a semiconductor shortage wave in recent years following the global outbreak of COVID-19 with the industry still in the process of recovering. While the supply shortage has reduced in recent months, some carmakers are still quoting long waiting periods for products as they try to clear backlogs.
