Home-grown semiconductor chip maker Polymatech plans to invest $1 billion by 2025 in setting up new units and expanding semiconductor manufacturing capacity, the company's Founding President Eswara Rao Nandam said.

The Chennai-based firm plans to expand its production capacity to 10 billion chips by December 2024 from the current output of 300 million.

The company's current production facility is located in Chennai and it plans to set up two new plants in Krishnagiri district of Tamil Nadu, around 90 km from Bengaluru.

"Our second plant is slated to start in September. The plant is ready, the final civil works are going to happen. Plant 3 will also be in Krishnagiri around 40 km away from plant 2" Nandam told DH in an interview.

"By December 2023 we will be reaching 2 billion chips. We have already issued purchase orders and machines are expected by the end of November," he said.

Polymatech makes opto-semiconductor chips that are used mostly in lighting, medical and food sanitisation applications "The total addressable market for opto-semiconductors is $2.2 trillion by 2030. The current size is around $1.35 trillion," he said.