Polymatech Electronics is set to make history with the establishment of India's first Gallium Nitride (GaN) semiconductor manufacturing facility in Nava Raipur, Chhattisgarh. This ground breaking initiative represents a significant milestone in India's journey toward semiconductor self-reliance, with a substantial investment of ₹1,143 crore backed by a 40% capital subsidy from the Chhattisgarh government.

The Chennai-based electronics giant will focus on producing cutting-edge GaN semiconductor chips and advanced packaging solutions essential for 5G and future 6G telecommunication infrastructure.

As India's semiconductor demand is projected to reach $64 billion by 2026 and $110 billion by 2030, this strategic investment aligns perfectly with the nation's Atmanirbhar Bharat and Make in India initiatives, promising to reduce import dependency while creating valuable employment opportunities for the local population.

Polymatech Electronics has announced its second manufacturing facility in India, to be located in Nava Raipur, Chhattisgarh. This state-of-the-art plant will specialize in producing semiconductor chips and base stations essential for the development of 5G and 6G networks, leveraging advanced Gallium Nitride (GaN) MMIC technology. The project represents a significant investment of ?1,143 crore, with substantial support from the state government in the form of a 40% capital subsidy.

The announcement was originally made during the Chhattisgarh Investor Connect 2024 event held in New Delhi, highlighting the state's commitment to attracting high-tech investments. The facility will be established in Sector-5 of Nava Raipur, with the company being allotted 150,000 square feet of land area through a tender process by the Nava Raipur Development Authority. Chief Minister Vishnu Deo Sai is scheduled to perform the 'Bhoomipujan' ceremony and lay the foundation stone for the unit on April 11, 2025, marking the official commencement of this landmark project.

The new facility will focus specifically on Gallium Nitride semiconductor technology, which represents a significant advancement over traditional silicon-based chips. GaN chips are known for their efficiency in high-frequency communications, making them crucial components for next-generation telecom infrastructure. These semiconductors will power the base stations central to 5G and 6G networks, enhancing the performance and reliability of advanced communication systems across India. The plant will incorporate comprehensive capabilities, including advanced packaging for these specialized chips, addressing multiple stages of the semiconductor manufacturing process. Initially, the facility will rely on outsourced chip fabrication until Polymatech's own foundry in Grenoble, France, becomes fully operational, creating a transitional strategy that allows for immediate production while building long-term manufacturing independence.

Polymatech's expansion strategy includes significant international partnerships to strengthen its manufacturing capabilities. The company is collaborating with Simply RF, a Cardiff-based UK company, to bolster India's position in the global semiconductor ecosystem. This strategic alliance enhances technological innovation and expands Polymatech's footprint in the international electronics landscape. The collaboration is expected to significantly boost Chhattisgarh's and India's capabilities in global semiconductor manufacturing, as noted by Rajat Kumar, the commerce and industry department secretary. Polymatech Electronics already maintains a global presence with operations in India, the United States, and Bahrain, contributing substantially to the global semiconductor and electronics industry. The company serves various sectors including telecommunications, artificial intelligence, and healthcare, positioning itself as a leader in advanced technology solutions.

The Chhattisgarh government has demonstrated exceptional commitment to facilitating this high-tech investment through proactive industrial policies and substantial financial support. Chief Minister Vishnu Deo Sai has emphasized the state's readiness to offer comprehensive policy support, tax incentives, infrastructure development, and special facilities to the electronic and semiconductor sector under the Make in India and Digital India campaigns. The state government acted swiftly to ensure the timely establishment of the facility, demonstrating its dedication to positioning Chhattisgarh as a key hub in India's semiconductor manufacturing ecosystem. This public-private partnership represents a coordinated effort between industry and government to advance India's technological capabilities. The 40% capital subsidy provided by the state government significantly reduces the financial burden on Polymatech, making the project more economically viable while accelerating its implementation timeline.

The establishment of Polymatech's GaN semiconductor facility is expected to create substantial employment opportunities for the people of Chhattisgarh, contributing to the state's economic development and technological advancement. Beyond local impact, this initiative holds national significance as India accelerates toward becoming a global semiconductor powerhouse. With domestic semiconductor demand projected to reach approximately 10% of global consumption by 2030, this facility represents a critical step toward reducing import dependency while strengthening domestic manufacturing capabilities.

Eswara Rao Nandam, CEO and Managing Director of Polymatech Electronics, has emphasised that this project aligns perfectly with the company's goal to advance India's technological prowess in semiconductor and telecom manufacturing. His statement, "With Chhattisgarh's support and our expertise in GaN technology, we are set to deliver next-gen solutions for the global 5G and 6G ecosystem," underscores the project's strategic importance.

The semiconductor plant in Nava Raipur represents just one component of India's broader ambitions in the semiconductor industry. As semiconductors are considered the foundation of digital technology, playing a critical role across the entire IT sector, this investment strengthens India's position in the global technology landscape. The facility aligns with the central government's goal of encouraging high-tech industries and supporting deep-tech innovation and scientific progress in India. Polymatech's investment in advanced GaN technology positions Chhattisgarh as an emerging hub for technological innovation, with potential for future expansion and development in related high-tech sectors. The state's proactive approach to industrial development, combined with Polymatech's technical expertise, creates a promising foundation for sustained growth in semiconductor manufacturing and related technologies.

Polymatech's GaN semiconductor manufacturing plant in Nava Raipur represents a watershed moment in India's technological development journey. The ₹1,143 crore investment, supported by the Chhattisgarh government's progressive industrial policies, demonstrates a shared commitment to advancing India's self-reliance in critical technologies. By focusing on next-generation GaN semiconductors for 5G and 6G applications, this facility addresses both current needs and future technological trends.

The collaboration between Polymatech Electronics and the Chhattisgarh government serves as a model for successful public-private partnerships in high-tech manufacturing. As Chief Minister Vishnu Deo Sai prepares to lay the foundation stone on April 11, this project stands as a testament to India's growing capabilities in semiconductor technology and its determination to become a global leader in this crucial industry. The establishment of India's first GaN semiconductor plant not only enhances domestic manufacturing capabilities but also strengthens the nation's position in the rapidly evolving global technology landscape.

TOI Report