- The two global industry leaders have formalised an agreement,
signing a Memorandum of Understanding (MoU) to collaborate on
cutting-edge semiconductor technology
- A joint venture company will be established in Grenoble,
France, a prominent European hub
for semiconductor innovation and research
- The new venture will specialise in producing high-quality
sapphire ingots and wafers, critical components for advanced
semiconductor devices, ensuring precision and efficiency in
production
- With this collaboration, Polymatech and ECM Group aim to
contribute to the growing demand for advanced semiconductor
solutions worldwide, positioning themselves at the forefront of
technological innovation
GRENOBLE, France, Sept. 12,
2024 /PRNewswire/ -- 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.
Under the MoU, the joint venture company will fabricate wafers
in Grenoble, positioning itself as a key player in meeting the
growing global demand, including Polymatech's own captive
consumption needs. Polymatech will hold a controlling interest of
over 75% in the venture. This strategic joint venture is designed
to bolster Polymatech's financial strength by securing capital at a
cost lower than its equity cost, further enhancing its solid
balance sheet. From a ratings perspective, the investment in the
joint venture is expected to be treated as equity-like, reinforcing
the company's financial flexibility and long-term growth
potential.
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.
"The agreement with ECM Group provides us with additional
flexibility to execute our strategy as we invest in creating the
world's most resilient and sustainable semiconductor supply chain,"
said Eswara Rao Nandam, CEO of
Polymatech. "Our investments in cutting-edge manufacturing
capacity in both the U.S. and Europe are vital to meet the rising demand for
sapphire, silicon, and silicon carbide materials, as the global
semiconductor market is expected to double in size over the next
five years. This joint venture allows us to partner with a renowned
technology leader on favourable terms while maintaining our strong
investment-grade credit rating."
Laurent Pélissier, Founding President and CEO of ECM
Group, added, "We are excited to enter this strategic
partnership with Polymatech. This joint venture highlights ECM
Group's expertise in innovating and delivering state-of-the-art
crystal growth equipment for high-quality semiconductor wafer
production. It also emphasises our role as a trusted partner with
50 years of experience, supporting the development of the new
economy, including next-generation AI technologies, which will
require significant investments in sustainable power generation,
data centres, foundries, and semiconductor capabilities."
"France has demonstrated
significant appeal to foreign investors in recent years, thanks to
its skilled workforce, stable legal and regulatory environment,
robust infrastructure, and strong innovation support under the
France 2030 initiative," said
Anis Jouini, General Manager of ECM Greentech.
"The Joint Venture complements Polymatech's forward integration
plans making Polymatech an End-to-End Semiconductor
Company," said Tarja Hannele Rapala
Virtanen, Director, Polymatech Electronics. "We will produce Sapphire wafers, Silicon
Carbide and Silicon Wafers from this French facility. The
uninterrupted and high-quality electricity produced by nuclear
electricity and Apls water gives us perfect quality
ingots," she added.
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 samples.
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. Website: https://www.groupe-ecm.com/
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. Website: https://ecm-greentech.fr/
Contacts
Badri Prasad Mahapatro
Polymatech Investor Relations
+91 73050 13756
cos@polymatech.in
Hasti Bhanushali
Polymatech Media Relations
+91 99307 63303
hasti.bhanushali@communicateindia.com
Benjamin DENEUX
ECM Greentech sales manager
+33 6 99 19 43 47
b.deneux@ecmtech.fr
Mr Florian GIRAUDET
ECM Group Marketing and Communication Manager
+33 4 76 49 65 60
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SOURCE Polymatech Electronics