By FY26, chipmaker Polymatech Projects $2.5 billion in Revenue

by IS_Indust

“Today we have 2 billion chips capacity, with the new machinery (to manufacture ingots and wafer fabrication), we will having 10 billion chips capacity this year itself,” Nandam said.

Due to its expanded production capacity, semiconductor chip maker Polymatech Electronics hopes to generate $2.5 billion (about Rs 20,000 crore) in sales by FY26, according to managing director and chief executive officer Eswara Rao Nandam in a conversation with the sources.

Polymatech is relying on a number of important factors to grow its top line, including the demand for energy-efficient lighting solutions like light-emitting diodes (LEDs) across industries like consumer electronics, infrastructure, and automobiles, as well as the rise in semiconductor solutions for horticulture and medical applications.

The company currently has orders worth Rs 7,000 crore (all exports) that it hopes to complete over the next two years. The company’s revenue increased by 85% year over year to Rs 1,200 crore in FY24, while its net profit increased by 64% to Rs 275 crore.

“With the new machinery (to manufacture ingots and wafer fabrication), we will have 10 billion chips capacity this year alone,” Nandam stated. “Today we have 2 billion chips capacity.”

Nandam estimates that 5–6 billion chips will be produced by next year if the 10 billion chip capacity is produced at an efficiency of 50–60%. He clarified that by manufacturing high-end items and factoring in a revenue of $0.5-0.6 per chip, the company will reach a $2.5 billion topline by March 2026.

Polymatech is active in the compound semiconductor and opto-semiconductor domains. equipment that can emit, detect, or control light are included in this type of semiconductor chip segment, which generally results in faster data transmission and increased power efficiency in electronics equipment.

Up until now, the business has been packaging chips and supplying them for end-user use. It will begin producing ingots and fabricating wafers this year. Wafers are made from ingots, which are semiconductor raw materials. After going through additional processing, the wafers are used to make finished chips. The business will first produce sapphire ingots, which are essential for producing LEDs.

“We will be a fully integrated fab to floor company by next year.  We will also fabricate silicon and silicon carbide wafers, so that whoever comes to India, we will be able to supply wafers to them,” Nandam said.

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