- Qualcomm Inc. has announced plans to outsource the production of semiconductor chips.
- The first company in India to produce opto-semiconductor chips is Polymatech.
- By 2025, Polymatech plans to have invested US$1 billion in establishing new units and increasing its manufacturing capacity.
To take advantage of India’s large scale and the demand for large chip volumes, Qualcomm Inc. has announced plans to outsource the production of semiconductor chips there. Investor interest has increased as a result of this development, focusing more attention on semiconductor IPOs.
Polymatech Electronics, an opto-semiconductor manufacturer based in India, has filed for an IPO and plans to go public shortly. With a solid track record of innovation, Polymatech is the first opto-semiconductor chip manufacturer in India.
Semiconductor stock
With the expectation that the global semiconductor market will increase from US$ 555.9 billion in 2022 to US$ 804.7 billion in 2028, Polymatech is in a strong position to profit from the rising demand for semiconductors both in India and globally.
The further driving force behind Polymatech’s expansion is the government of India’s aspirational goal, under the Modi administration, to create the largest semiconductor ecosystem in the world within its borders. On October 6, 2023, the company filed its Draft Red Herring Prospectus (DHRP) with the market regulator.
The compound annual growth rate (CAGR) for the company’s revenue between the fiscal years 2021 and 2023 was 139.9%, indicating impressive revenue growth. The unique use of opto-semiconductor chips that Polymatech has created, developed, and produced internally gives it a competitive advantage.
By 2025, Polymatech plans to have invested US$1 billion in establishing new units and increasing its manufacturing capacity, demonstrating its significant commitment to future growth.
By December 2024, the company intends to increase its production capacity as part of a strategic growth plan. Polymatech is getting ready to open two more manufacturing facilities in Tamil Nadu’s Krishnagiri district to meet this lofty objective.
Polymatech is susceptible to various risk factors, such as interruptions, slowdowns, or shutdowns in its manufacturing or research and development operations; reliance on a restricted clientele; and postponements, suspensions, or reductions in the raw material supply from manufacturers and third-party suppliers.
With a total addressable market predicted to reach US$ 2.2 trillion (tn) by 2030, much exceeding its current size of approximately US$ 1.35 tn, the opto-semiconductor market offers a substantial growth opportunity.
