Polymatech and ECM Group form French semiconductor JV
Polymatech has signed a Memorandum of Understanding (MoU) with ECM Group 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 is Polymatech's second semiconductor co-investment program, highlighting its commitment to growing in the semiconductor industry. The move is part of the company's "Smart Strategy", focused on expanding its global manufacturing presence while maintaining a robust financial position.
The proposed joint venture will establish its manufacturing operations in Grenoble, a prominent European hub for semiconductor innovation and research. The future facility will be Polymatech's premier hub for large-scale sapphire wafer production, using advanced green technologies from both Polymatech and ECM Group.
Polymatech and ECM Group will make an initial joint investment of EUR 100 million, with Polymatech holding the majority stake. This follows Polymatech's earlier investment of USD 30 million in wafer development.
By moving wafer fabrication to the new Grenoble facility, Polymatech says it can focus on unlocking and redeploying high-end packaging capabilities at its Chennai plant in India. As part of its global strategy, the company is investing billions to expand its wafer fabrication and advanced packaging capabilities 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 consumption needs. Polymatech will hold a controlling interest of over 75% in the venture.
"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," says Eswara Rao Nandam, CEO of Polymatech, in the press release. "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."
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.
"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," adds Laurent Pélissier, Founding President and CEO of ECM Group.
The joint venture will begin production in January 2026, with an annual capacity of 500,000 wafers. This marks Polymatech's first manufacturing operation in Europe, specifically in France, in partnership with ECM Group.
