Polymatech is a multinational corporation and a leader in the semiconductor manufacturing industry, with a strong India market presence and operations in United States, Singapore, Bahrain, United Kingdom, and U.A.E.. Recently, the company announced a partnership with ECM Group, one of the world's leading microelectronics and semiconductor technology companies, and it was reported that the two companies will set up a joint venture in Grenoble, France. The new company will focus on the production of sapphire ingots and wafers, materials that are key to the manufacture of advanced semiconductor devices.
This is Polymatech's second semiconductor co-investment and further underscores its strategic focus to drive growth in the semiconductor industry. The project is part of Polymatech's overall strategy to expand its global manufacturing footprint and maintain a strong financial position. The joint venture will establish a manufacturing facility in Grenoble, known as the "Silicon Valley of Europe", an important hub for semiconductor technology in Europe, home to several industrial giants and research institutes. The state-of-the-art facility will be the main production hub for Polymatech sapphire wafers and will feature advanced green technologies from Polymatech and ECM Group.
The two companies plan to invest EUR 100 million together, in which Polymatech will hold a majority stake. Previously, Polymatech had invested $30 million in wafer development. By moving wafer manufacturing to the new Grenoble facility, Polymatech will be able to focus on unlocking and optimising the high-end packaging capabilities of its Chennai facility. In line with its Global Transformation Strategy, Polymatech is committed to investing significantly to strengthen its process leadership position and expects to invest billions of dollars to further enhance its global wafer manufacturing and advanced packaging capabilities.
Under the agreement, the joint venture will produce wafers in Grenoble and position itself as a key player in the global market to meet growing demand, both for Polymatech's own internal needs and for external customers. Polymatech will hold more than 75% of the controlling stake in the joint venture. The strategic partnership not only brings financial flexibility to Polymatech, but also lays the foundation for the company's long-term growth. The investment is expected to be an equity investment, which will strengthen Polymatech's financial strength and further optimize its balance sheet.
The new joint venture will produce wafers for Polymatech on a cost-plus-profit basis. Under the agreement, Polymatech commits to procure wafers produced by the joint venture, both for internal consumption and for supply to external customers, and to purchase a minimum number of wafers once the fab is in production. This arrangement is expected to reduce Polymatech's cost of goods (COG) and improve overall profitability.
Figure: Polymatech and ECM Group set up semiconductor manufacturing company in France (Source: Polymatech)
Eswara Rao Nandam, CEO of Polymatech, said: "Partnering with ECM Group provides us with greater strategic flexibility to support our efforts to build the world's most resilient and sustainable semiconductor supply chain. Our cutting-edge manufacturing investments in the United States and Europe are critical to meeting the growing global demand for sapphire, silicon and silicon carbide materials, especially as the global semiconductor market is expected to double over the next five years. Through this joint venture, we are not only able to secure favorable terms, but also to be able to work with a well-known technology leader while maintaining a strong investment grade credit rating. ”
Laurent Pélissier, Founding President and CEO of ECM Group, said: "We are delighted to enter into this strategic partnership with Polymatech. This joint venture exemplifies ECM Group's innovation and expertise in the field of advanced crystal growth equipment and demonstrates our role as a trusted partner to the semiconductor industry, especially in supporting the development of the new economy and the next generation of AI technologies.”
Anis Jouini, Managing Director of ECM Greentech, added: "In recent years, France has attracted a large number of foreign investors thanks to its skilled workforce, stable legal and regulatory environment, well-developed infrastructure and innovative support provided by the France 2030 Plan.”
Tarja Hannele Rapala Virtanen, Director of Polymatech Electronics, said: "This joint venture will complement Polymatech's forward integration strategy and further strengthen its position as an end-to-end semiconductor company. We will produce sapphire wafers, silicon carbide and silicon wafers from this France plant. "The uninterrupted, high-quality electricity provided by nuclear power and Alpine Hydro enables us to produce high-quality ingots." "ECM Group, through its subsidiary, ECM Greentech, will supply furnaces utilizing advanced sapphire crystal growth processes. ECM Greentech will work with key partners to set up a complete production line, from ingot production to the final wafer or specific sample.
The joint venture is scheduled to start production in January 2026 with an annual wafer capacity of 500,000 wafers. The joint venture marks Polymatech's first manufacturing base in Europe, particularly in France, in partnership with ECM Group.
