Polymatech Electronics bets big on India, AI chips as It expands globally: CEO

Chennai-based Polymatech Electronics, a player in semiconductor and opto-electronic components, is accelerating its India-focused growth strategy as it rides the wave of rising demand for high-performance chips, particularly those powering AI, 5G/6G, and telecom infrastructure. The company, which is already India’s first opto-semiconductor manufacturer, plans to expand its footprint across the country while leveraging government incentives and global partnerships to deepen its technology offerings.

In an interaction with TechCircle, Eswara Rao Nandam, CEO of Polymatech Electronics Limited. highlighted India’s potential as a semiconductor hub and laid out Polymatech’s roadmap for scaling operations through diversification, innovation, and strategic collaborations.

“India’s semiconductor ecosystem is poised for exponential growth,” Nandam said, citing the country’s skilled workforce, evolving supply chains, and supportive government schemes such as the Production Linked Incentive (PLI) and capital subsidies. “Our GaN manufacturing facility in Chhattisgarh and existing units in Tamil Nadu are just the beginning. With continued investments and collaborations, India can move from being a design-centric hub to a full-fledged manufacturing powerhouse.”

According to him, supply chain disruptions, exacerbated by US–China trade tensions and uncertainties around Taiwan, have forced semiconductor companies to rethink their global strategies. Nandam expects a gradual stabilisation over the next two to three years as manufacturing diversifies into regions such as India, Europe, and the US.

“We are expanding in Estonia and entering into joint ventures in France to build resilient, multi-regional operations,” he explained. “These efforts reduce dependency on volatile regions and ensure continuity while positioning us to serve emerging markets.”

AI, 5G and beyond

AI-driven demand for high-performance chips is central to Polymatech’s growth plans. The company is investing heavily in Gallium Nitride (GaN) chips, which are critical for AI data centres, edge computing, and next-generation telecom networks. Alongside, it is expanding its portfolio to include sapphire wafers and advanced printed circuit boards (PCBs) used across defense, automotive, and consumer applications.

“We are transitioning from a component supplier to a product company,” Nandam noted. “Our new electronics line featuring inbuilt IoT capabilities is under testing and expected to launch by Christmas 2025.”

Addressing infrastructure gaps

While opportunities are abundant, infrastructure bottlenecks remain a challenge. Polymatech’s leadership identified unreliable power supply, limited access to speciality gases, water shortages, and insufficient logistics networks as key hurdles.

“Government support is critical,” Nandam said. “Enhanced PLI incentives, tax waivers on critical imports, and investments in dedicated semiconductor parks will be transformative. Strengthening R&D hubs like the Mohali lab and extending design-linked incentives will further unlock innovation.”

R&D and expansion on overdrive

Polymatech is scaling its R&D footprint across continents, with new centers in Helsinki, Finland, and Fukuoka, Japan, complementing existing units in Chennai and California. On the expansion front, a PCB plant in Estonia and scaled GaN production in Chhattisgarh are set to meet growing demand.

The company’s product pipeline includes 6G telecom dies, advanced PCBs for AI and defense sectors, and next-generation sapphire wafers aimed at telecom and automotive customers.

Besides, strategic acquisitions and partnerships are central to Polymatech’s roadmap. The company recently acquired Nisene Technology Group in California to enhance decapsulation and testing capabilities. In Europe, it formed a joint venture with ECM Group in Grenoble, France, to set up wafer fabrication operations, marking its first manufacturing presence in Europe. Additionally, a semiconductor substrate and PCB facility in Estonia is being developed under its subsidiary, Brandner Electronics OÜ.

Compared with peers like Continental Device India and global giants such as Panasonic, Polymatech’s focus on high-performance chips for AI and 5G/6G applications, supported by strong R&D and international expansion, gives it an edge.
“We see opportunities to scale capacity and strengthen working capital,” Nandam acknowledged. “Our ongoing investments and partnerships are aimed at addressing these gaps and enhancing competitiveness.”

Building resilience 

The cyclical nature of the semiconductor industry is addressed through diversification and disciplined financial management. Polymatech’s global footprint helps shield against geopolitical risks, while ongoing R&D investments ensure alignment with high-growth sectors.
“Our diversified portfolio reduces reliance on any one segment,” said Nandam. “By leveraging government incentives and focusing on innovation, we aim to sustain growth and profitability even during downturns,” he said.