New Delhi, Aug 3 (IANS): Domestic chip manufacturer Polymatech Electronics on Wednesday said it will invest $1 billion in the country towards semiconductor manufacturing by 2025.

Polymatech has signed a memorandum of understanding (MoU) with the Tamil Nadu government with an initial investment of $130 million.

Established in 2007, the company said it has imported all equipment for semiconductor manufacturing from Japan.

"With a team of best global minds in tech and our investment in the business, we are sure to be able to capitalise on the industry's potential and scale the semiconductor market in India," said Nandam Eswara Rao, Founding President, Polymatech.

Polymatech has successfully completed all required trials with the first phase of imported machinery that has a capacity of 250 million chips.

To make India a leading semiconductor manufacturing hub, the government announced a Rs 76,000 crore production-linked scheme (PLI) package last year.

"We plan to become one of the largest chip manufacturers in Asia by 2025," said Rao.

Prime Minister Narendra Modi said in May that India's own consumption of semiconductors is expected to cross $80 billion by 2026 and $110 billion by 2030.

According to IT Minister Ashwini Vaishnaw, the government has received many applications under the semiconductor PLI scheme and expects the process to take about 15-18 months to complete.

So far, India has received investment proposals from five global Semiconductor majors to set up semiconductor fab and display fab locally in the country.