Polymatech, a multinational corporation (MNC), a leading player in semiconductor manufacturing with a strong presence in India and global business operations in USA, Singapore, Bahrain, UK and UAE today announced the signing of a Memorandum of Understanding (MoU) with ECM Group, a globally recognised leader in advanced microelectronics and semiconductor technologies to establish a Joint Venture Company in Grenoble, France. The new venture will focus on producing sapphire ingots and wafers, key materials for advanced semiconductor devices.

This marks Polymatech's second Semiconductor Co-Investment Program, reinforcing the company's strategic focus on accelerating growth in the semiconductor industry. The initiative is part of Polymatech's broader Smart Strategy, aimed at expanding its global manufacturing footprint while maintaining a robust financial position. The proposed Joint Venture Company will establish its manufacturing operations in Grenoble, known as the Silicon Valley of Europe, and it is a pivotal hub for semiconductor technology in Europe. Grenoble is home to key industrial entities and prime research institutions. This state-of-the-art facility will serve as Polymatech's premier high-volume production hub for sapphire wafers, utilising the cutting-edge Greentech technologies from both Polymatech and ECM Group.

Polymatech and ECM Group will make an initial joint investment of €100 million, with Polymatech holding the majority stake. This follows Polymatech's earlier investment of $30 million in wafer development. By shifting wafer fabrication to the new Grenoble facility, Polymatech can focus on unlocking and redeploying high-end packaging capabilities at its Chennai plant. Aligned with its global transformation strategy, Polymatech is committed to substantial investments in expanding process leadership, including billions of dollars to enhance its wafer fabrication and advanced packaging capacities worldwide.

The joint venture will manufacture wafers for Polymatech on a cost-plus-margin basis. Under the agreement, Polymatech is committed to purchasing wafers from the joint venture for both its internal use and external customers, with minimum volume commitments following the facility's substantial completion. This arrangement is expected to lower Polymatech's cost of goods (COGs), enhancing overall profitability.

ECM Group, through its subsidiary ECM Greentech, will supply the furnaces, leveraging advanced sapphire crystal growth processes. ECM Greentech will collaborate with key partners to establish a complete production line, from ingot creation to finalised wafers or specific sample. Production at the joint venture is slated to begin in January 2026, with an annual wafer capacity of 500,000 units. This venture marks Polymatech's first manufacturing presence in Europe, specifically in France, in partnership with ECM Group.

About Polymatech:

Polymatech Electronics, is a Multi-National Multi-Wafer Semiconductor chips manufacturer and advanced electronic RF systems and components maker Specialising in compound semiconductor technologies. Polymatech plays a key role within this essential industry sector that is at the heart of our digital world from handsets to data centres, mobility, and net-zero applications, healthcare, robotics and AI". Polymatech has manufacturing facilities in India, the US and Bahrain.

About ECM Group:

An independent French industrial group, which designs and manufactures equipment and associated processes for the treatment and transformation of materials at high temperatures. Solutions from the ECM Group are designed to improve the performance of industries and contribute to their technological and ecological transitions.

About ECM Greentech:

ECM Greentech is a subsidiary of the ECM Group. The company has been dedicated to the design and commissioning of turn-key lines for crystal growth, renewable energies and semiconductor industries for more than 30 years. ECM Greentech is now the leading crystal growth equipment manufacturer in France and a recognized worldwide participant in crystal growth equipment manufacturing for a large variety of materials.. It supports manufacturers in a wide variety of industries in which advanced materials high-temperature processing equipment are commonly used. They all need high-quality, high-precision, stable and well-engineered machines to manufacture high-quality and large-scale workpieces. 

 

Source: prnewswire.com

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