The two companies formalized the agreement by signing a Memorandum of Understanding (MoU) to cooperate on cutting-edge semiconductor technologies. The joint venture will be established in Grenoble. Francea prominent European hub for semiconductor innovation and research. The new company will specialize in the production of high-quality sapphire ingots and wafers, key components of advanced semiconductor devices, while ensuring production precision and efficiency. With this cooperation, Polymatec and ECM Group aim to contribute to the growing demand for advanced semiconductor solutions around the world and be at the forefront of technological innovation.
Grenoble, France, September 12, 2024 /PRNewswire/ — Polymatec, a multinational company (MNC), is a leading semiconductor manufacturing company. India Global business operations in the United States, Singapore, BahrainThe 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 in Grenoble. FranceThe new company will focus on producing sapphire ingots and wafers, a key material for advanced semiconductor equipment.
This is Polymatec’s second semiconductor co-investment program and reinforces the company’s strategic focus on accelerating the growth of the semiconductor industry. The effort is part of Polymatec’s broader SMART strategy, which aims to expand its global manufacturing footprint while maintaining a strong financial position. The proposed joint venture will begin manufacturing operations in Grenoble, Silicon Valley. Europeand it is an important base for semiconductor technology. EuropeGrenoble is home to major industrial associations and leading research institutes. This state-of-the-art facility will leverage Polymatech and ECM Group’s cutting-edge Greentech technologies and serve as Polymatech’s main mass production site for sapphire wafers.
Polymatec and ECM Group will initially jointly invest €100 million in the company, with Polymatec taking the majority stake. This is the first investment made by Polymatec in $30 million in wafer development. Moving wafer manufacturing to the new Grenoble facility will allow Polymatec to focus on freeing up and redeploying high-end packaging capabilities in its own facilities. Chennai In line with its global transformation strategy, Polymatec is focused on making significant investments to expand its process leadership, including investing billions of dollars to expand its wafer fabrication and advanced packaging capabilities around the world.
Under the MoU, the joint venture will manufacture wafers in Grenoble and position itself as a major player in meeting growing global demand, including Polymatec’s own consumption needs. Polymatec will hold a controlling interest of more than 75% in the joint venture. The strategic joint venture is designed to strengthen Polymatec’s financial strength by securing capital at a lower cost than its cost of equity, further enhancing its strong balance sheet. From a ratings perspective, the investment in the joint venture will be treated like equity and is expected to enhance the company’s financial flexibility and long-term growth potential.
The joint venture will manufacture wafers for Polymatec on a cost-plus-margin basis. Under the agreement, Polymatec will commit to purchase wafers from the joint venture for both its internal use and external customers on a minimum volume commitment basis following substantial completion of the facility. This arrangement is expected to lower Polymatec’s cost of goods (COG) and improve its overall profitability.
“Our agreement with ECM Group provides us with additional flexibility to execute on our strategy to invest in building the world’s most resilient and sustainable semiconductor supply chain,” said David Schneider, CEO of ECM Group. Eswara Rao Nandam“Investing in America and state-of-the-art manufacturing capabilities here is a great opportunity for us,” said the Polymerec CEO. Europe “With the global semiconductor market expected to double in size over the next five years, this joint venture is essential to meet the growing demand for sapphire, silicon and silicon carbide materials. It enables us to partner on advantageous terms with a recognized technology leader while maintaining our high investment-grade credit rating.”
Laurent Pelissier, Founding President and CEO of ECM Group, added: “We are very pleased to enter into this strategic partnership with Polymatec. This joint venture highlights ECM Group’s expertise in innovating and delivering state-of-the-art crystal growth equipment for the production of high-quality semiconductor wafers. It also underlines 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 centers, foundries and semiconductor capabilities.”
“France In recent years, the country has become a major attraction for foreign investors due to its skilled workforce, stable legal and regulatory environment, robust infrastructure, and strong support for innovation. France “The 2030 Initiative,” said Anis Jouiny, general manager of ECM Greentech.
“This joint venture complements Polymatec’s future integration plans, making Polymatec an end-to-end semiconductor company,” the company said. Tarja Hannele Rapala VirtanenDirector of Polymatech Electronics. “This French facility produces sapphire, silicon carbide and silicon wafers. Uninterrupted, high-quality electricity produced by nuclear power and Aplus Water ensures the production of perfect quality ingots.“ She added:
ECM Group, through its subsidiary ECM Greentech, supplies furnaces utilizing advanced sapphire crystal growth processes, which work with key partners to establish complete production lines from ingot creation to finished wafers or specific samples.
The joint venture’s production is January 2026With an annual production capacity of 500,000 wafers, the project will be Polymatec’s first manufacturing site. Europein particular FranceIn partnership with ECM Group.
About Polymatec
Polymatec Electronics is a multinational multi-wafer semiconductor chip manufacturer and advanced electronic RF systems and components manufacturer specializing in compound semiconductor technology. Polymatec plays a key role in this vital industry sector at the heart of the digital world, from mobile phones to data centers, mobility, net-zero applications, healthcare, robotics and AI. Polymatec is IndiaUnited States and Bahrain.
About ECM Group
Independent French industrial group that designs and manufactures equipment and related processes for the treatment and transformation of materials at high temperatures. ECM Group’s solutions are designed to improve industrial performance and contribute to the technological and environmental transition. Website: https://www.groupe-ecm.com/
About ECM Green Tech
ECM Greentech is a subsidiary of the ECM Group, which for over 30 years has been designing and commissioning turnkey lines for the crystal growth, renewable energy and semiconductor industries.
ECM Green Tech is currently France A globally recognized company in the manufacture of crystal growth equipment for a wide variety of materials. We support manufacturers in various industries where high-temperature processing equipment for advanced materials is commonly used. Producing high-quality, large-scale workpieces requires machines with high quality, high precision, stability and excellent engineering. Website: https://ecm-greentech.fr/
contact address
Badri Prasad Mahapatro
Polymatec Investor Relations
+91 73050 13756
(email address protected)
Hasti Bhanushali
Polymatec Media Relations
+91 99307 63303
(email address protected)
Benjamin Denoux
ECM Green Tech Sales Manager
+33 6 99 19 43 47
(email address protected)
Florian Giraudet
ECM Group Marketing and Communications Manager
+33 4 76 49 65 60
Logo: https://mma.prnewswire.com/media/2475172/Polymatech_Logo.jpg
Source: Polymatec Electronics
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