Chennai-based Polymatech Electronics has urged the government to grant income and corporate tax holidays for the semiconductor sector, arguing that fiscal relief, rather than subsidies, will give the industry long-term momentum.
“We are not seeking taxpayer money. Instead, we request a 10-year tax holiday and removal of import duties on machinery and raw materials,” Eswara Rao Nandam, CEO of Polymatech Electronics, said. He noted that several countries had provided similar support to semiconductor makers.
Pointing to the US as an example, Nandam said tax breaks under the Biden administration helped the industry, while their rollback during the Trump presidency pushed over 120 firms into bankruptcy. “Your business should generate your money; you should not depend on someone else’s,” he said.
Industry calls for infrastructure, gas, and power supply support
Nandam added that the industry also needs robust infrastructure, including uninterrupted power supply and gas systems. While welcoming the commerce ministry’s relaxation of Special Economic Zone (SEZ) rules reducing minimum land requirement for electronics units from 50 hectares to 10, he said that zero income tax would be “the icing on the cake”.
At its Chennai facility, Polymatech operates a “dark factory,” an automated plant run by robots. Nandam stressed that the move was not about cutting costs but building advanced capabilities. “This creates a large number of white-collar jobs,” he said.
Polymatech’s investment in Chhattisgarh
Founded in 2018 with revenues of just Rs 14 crore, Polymatech expects to close FY25 with nearly Rs 2,000 crore in turnover. The company is investing Rs 1,143 crore in Chhattisgarh’s first advanced semiconductor unit at Nava Raipur, focused on Gallium Nitride (GaN) chips, which are crucial for powering 5G and future 6G networks.
Exports span the US, UK and Middle East, with applications ranging from medical devices and agriculture to lighting, laptops and mobile backlights. “Polymatech is exploring acquisitions and partnerships to expand globally. The GaN plant is a significant milestone in building competitiveness and strengthening manufacturing capabilities,” Nandam said.
