First Indian Chipmaker to Go Public: Polymatech

Polymatech Electronics, India's first chipmaker to go public, is set to raise up to Rs 750 crore through an initial public offering (IPO). The company manufactures a range of opto-semiconductor chips, including LEDs, photodiodes, and sensors. These chips are used in a variety of applications, including lighting, displays, automotive, and communication systems.

Polymatech Electronics, India’s foremost opto-semiconductor chip manufacturer, has taken a monumental step towards shaping the future of the Indian semiconductor industry. On October 5, 2023, the company filed draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) that could potentially raise up to Rs 750 crore through a fresh issue of equity shares. If successful, this IPO would mark Polymatech as the first Indian chipmaker to go public, a significant milestone for the burgeoning domestic semiconductor landscape.

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The Indian Semiconductor Landscape:

The Indian semiconductor industry is in its nascent stages of development, striving to catch up with global counterparts. The government of India has been actively advocating for the growth of the domestic semiconductor industry to reduce reliance on imports and strengthen national technological capabilities.

Polymatech’s IPO is poised to pivotally catalyze this growth and set the stage for the industry’s progression.

The Indian Electronic and Semiconductors Association (IESA) anticipates that the Indian semiconductor market will reach a value of approximately US$ 64 billion by the year 2026.

Concurrently, projections by the World Semiconductor Trade Statistics (WSTS) indicate that the global industry market size will expand to around US$ 1,340 billion by 2029. Presently, there is a substantial global demand for semiconductor chips, which has led to a shortage in the market. In India, the semiconductor market heavily relies on imported chips to meet its requirements.

Read More: What is the Progress of Semiconductor Ecosystem in India in Last 2 years?

What is Polymatech?

In 2019, Polymatech embarked on its venture, delving into the realm of designing and manufacturing opto-semiconductor chips and lighting systems. The company utilizes European and Japanese technologies to create widely adopted solutions. These solutions find applications in diverse industries, especially for large-area illumination in commercial settings. Their product portfolio has grown to include applications in medical devices, data transmission, specialized lighting for photosynthesis, aqua lighting, and sanitization, among others.

Polymatech operates from a modern facility in Oragadam. They handle the entire process of designing, testing, and manufacturing opto-semiconductor chips. The acquisition of a facility in Krishnagiri, Tamil Nadu, signifies their plan for a second manufacturing plant, aligning with their growth strategy.

Polymatech Electronics specializes in the manufacture of a diverse range of opto-semiconductor chips, encompassing LEDs, photodiodes, and sensors. These chips find applications in various sectors, including lighting, displays, automotive, and communication systems. The company has fostered a robust customer base both within India and on the international stage, showcasing significant growth in recent years.

Polymatech experienced a significant financial upswing in the fiscal year 2022-2023. Revenue surged to ₹649 crore from ₹126 crore in FY22. The profit after tax for the same period was ₹168 crore, a substantial increase from ₹34 crore from previous year.

Read More: Why India is Paying for 70% of Micron’s ATMP Plant, Even Though Micron Owns It 100%

History of Polymatech

Founded in 2007, Polymatech Electronics Ltd stands as one of the early pioneers in semiconductor chip manufacturing within India. Focused on leveraging advanced Japanese technologies, the company has emerged as a prominent player in the microelectronics sector. Its product range holds significant importance across various applications, enhancing daily life through microelectronics. Polymatech emphasizes exceeding customer expectations and maintaining a competitive edge.

The company assists clients in successfully navigating industry shifts. Additionally, they have strategically positioned plants – one located in Oragadam, a hub for South Asia’s automotive industry, and another in Krishnagiri, conveniently situated near urban centers.

Polymatech’s origins trace back to 1947 when production commenced under Fuji Rubber Co., Ltd in Tokyo. It underwent various name changes and evolved into Polymatech Co., Ltd by 1997.

In 2007, Polymatech Electronics Private Limited collaborated with Polymatech Company Limited Japan and Polymatech (Malaysia) SDN BHD, marking a significant milestone.

Established in 2007, Polymatech Electronics Ltd in Chennai was founded as a foreign-owned entity. In 2016 and 2017, Eswara Rao Nandam and Uma Nandam acquired the company through modified share purchase agreements, altering its ownership structure.

In 2018, a notable ownership transition took place, marking the acquisition of Polymatech Electronics Private Limited by the Nandam Family. This fascinating trajectory reflects Polymatech’s journey of growth and adaptability within the semiconductor industry.

Read More: 3 Reasons India is Focussing on Compound Semiconductors

What are opto-semiconductor chip’s Future?

Opto-semiconductor chips are electronic devices that interact with light. These chips can function in two primary ways: they can either emit light, exemplified by light-emitting diodes (LEDs), or detect light, as seen in photodiodes.

Manufacturers craft opto-semiconductor chips using semiconductor materials, including silicon, germanium, and gallium arsenide.

A wide variety of applications utilize opto-semiconductor chips, including:

  • Lighting: LEDs are now the most common type of lighting used in homes, businesses, and public spaces. They are energy-efficient, long-lasting, and durable.
  • Displays: Opto-semiconductor chips are used in displays in TVs, computers, smartphones, and other devices. They provide bright, clear, and colorful images.
  • Automotive: Opto-semiconductor chips are used in a variety of automotive applications, such as headlights, taillights, brake lights, and turn signals. They are also used in sensors that detect objects in the road and help to prevent accidents.
  • Communication: Opto-semiconductor chips are used in fiber-optic communication systems. They transmit data over long distances at high speeds.
  • Medical devices: Opto-semiconductor chips are used in a variety of medical devices, such as laser surgery systems, MRI machines, and blood glucose meters.

Opto-semiconductors have a very bright future potential. Their use is already widespread across a variety of applications, and it is set to grow even further in the coming years.

Read More: Top 10 Semiconductor Companies in India and Why They’re Poised for Growth

Utilization of IPO Proceeds:

The IPO is expected to generate approximately Rs 750 crore. These funds will boost Polymatech’s manufacturing facilities and drive innovation in new product development. The company plans to enter the growing automotive and medical markets, broadening its product range and market reach.

We recognize the immense scope of growth in the industry. As players at the forefront, we wish to expand our business and create value in the market. With a team made of the best global minds in tech and our investment in the business, we are sure to be able to capitalize on the industry’s potential and scale the semiconductor market in India. We plan to be one of the largest chip manufacturers in Asia by 2025

~Polymatech Electronics

Future Prospects and Industry Impact:

Polymatech’s IPO poised for attracting a diverse investor base, both domestically and internationally, thanks to its promising outlook and strategic position in the semiconductor sector. Furthermore, the escalating demand for opto-semiconductor chips, both locally and worldwide, places Polymatech favorably to capitalize on this burgeoning market. Moreover, analysts anticipate the IPO not only to bolster the company’s growth but also to stimulate the broader semiconductor industry.


Polymatech Electronics’ decision to file for an IPO marks a watershed moment for the Indian semiconductor industry. Polymatech Electronics is paving the way as India’s inaugural public chipmaker, driving growth in the semiconductor sector and fostering technological independence. The company prioritizes innovation, market reach, and industry leadership, propelling India’s semiconductor landscape towards a bright future.

Editorial Team
Editorial Team
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