GX Group to invest Rs 3,000 crore to build photonics chip ecosystem

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GX Group, a Netherlands-headquartered broadband major plans to invest about Rs 3,000 crore over the next four years into its new subsidiary, GX Quantum Photonics focused on developing advanced indigenous photonic chips and modules for 5G/6G, AI data centres, EV LiDAR, and quantum communication applications.

The venture marks the company’s first major step toward establishing an indigenous photonics manufacturing ecosystem in India, which would start with an initial investment of Rs 500 crore.

“The company will begin production for its optical units in the first quarter of FY27, marking the beginning of localised manufacturing for data centre components,” Paritosh Prajapati, CEO of GX Group, told Fe.

Backed by Invest International (Netherlands) and in collaboration with SMART Photonics BV, the new facility will be set up in Bhiwadi, Rajasthan. The company says that the idea is to design and manufacture photonic modules domestically with over 90% local value addition. It is also exploring manufacturing units in Uttar Pradesh, Andhra Pradesh, and other locations in Rajasthan to meet the growing demand for high-speed optical connectivity and next-gen cloud infrastructure.

“Quantum is the future and quantum photonics is where real progress begins,” Prajapati added. “We believe in ‘Make in India and Scale for the World.’ With this venture, every stage from design and IP creation to production will happen in India.”

Founded in the Netherlands in 2012, GX Group entered the Indian market in 2018 and has since steadily expanded its operations. The company set up a manufacturing facility in Manesar in 2021 and established its largest R&D centre in Chennai in 2022. It currently supplies broadband and connectivity solutions to major operators including Bharti Airtel, ACT Fibernet, Asianet, Excitel, KCCL, among others.

GX Group has availed benefits under the country’s semiconductor and component incentive schemes, with its Small Form-Factor Pluggable (SFP) optical products having received approval under the telecom production-linked incentive (PLI) scheme.

“Under the PLI scheme, we have submitted a proposal worth $60 million, out of which we’ve already availed $30–35 million,” Prajapati said.

GX Quantum Photonics is expected to create 300+ high-skilled jobs in advanced chip design and fabrication.