Izmo Microsystems Private Limited, the semiconductor division of NSE-listed Izmo Limited, has announced a strategic Memorandum of Understanding with European photonics leaders CCRAFT SA and Alcyon Photonics SL under SEBI Regulation 30 compliance.

Partnership Framework

The tri-party collaboration establishes a comprehensive framework for jointly designing, producing, and commercializing advanced photonic integrated circuit solutions. The partnership targets key growth markets including datacom, telecom, aerospace, and sensor applications.

Technology Capabilities Integration

CCRAFT operates an ISO-certified 150 mm wafer foundry and specializes in thin-film lithium niobate photonic chips, enabling electro-optic modulators exceeding 400 Gbit/s. Alcyon Photonics delivers validated, fabrication-ready photonic IP designs with proven architecture libraries.

Izmo Microsystems contributes advanced semiconductor packaging and co-packaged optics capabilities, operating from a Class 1000 cleanroom in Bangalore. The company recently achieved a significant breakthrough in silicon photonics packaging, becoming the first Indian company to demonstrate end-to-end silicon photonics packaging capability.

Market Opportunity

The global silicon photonics market presents substantial growth potential, with industry research indicating the market was valued at approximately USD 2.00-3.00 billion and projected to grow at a CAGR of 25.00-30.00%. The total addressable market is estimated at USD 10.00-22.00 billion by the early 2030s, potentially exceeding USD 28.00 billion.

Strategic Positioning

Under the MoU, Izmo Microsystems has been designated as a preferred packaging partner and will provide design guidelines to optimize photonic integrated circuits for advanced packaging. The collaboration positions the company within Europe's advanced photonics ecosystem, establishing an India-Europe technology bridge combining India's semiconductor packaging infrastructure with Europe's chip design and foundry leadership.

IZMO Limited has announced a major strategic expansion through its advanced semiconductor packaging subsidiary, izmoMicro (izmo Microsystems Pvt. Ltd.), which has entered India's defence electronics sector. The move positions the company to capitalize on India's record defence budget and indigenization initiatives through advanced semiconductor packaging solutions.

Strategic Defence Sector Entry

The company's subsidiary izmoMicro is now engaged with India's leading defence organizations, including government research establishments, defence public sector undertakings, and private sector defence primes as an advanced packaging partner for mission-critical electronics programs. This strategic entry comes as India's defence budget reaches an all-time high, creating substantial opportunities for domestic technology providers.

Record Defence Budget and Market Opportunity

India's defence budget has reached an unprecedented ₹7.85 lakh crore for FY2026-27, with three-quarters of all capital acquisition spending mandated exclusively for Indian companies. This policy shift effectively redirects procurement worth lakhs of crores annually into the domestic supply chain, creating sustained demand for companies with advanced technology capabilities.

Advanced Technology Capabilities

izmoMicro brings specialized capabilities in radar and sensing systems, high-frequency RF and microwave assemblies for electronic warfare and communications, airborne electronics for fighter aircraft and unmanned platforms, and precision guidance systems. The company is recognized as India's technology leader in advanced semiconductor packaging, being the only company in India with demonstrated capability across silicon photonics, 3D System-in-Package architectures, and defence-grade hermetic ceramic packaging.

Commenting on the development, Dinanath Soni, Director of izmoMicro, stated that India's defence modernization and government policy support for domestic semiconductor capability are creating meaningful opportunities for companies with strong engineering and advanced manufacturing expertise.

Indigenization and Policy Support

The Atmanirbhar Bharat initiative reinforces these opportunities with enforceable policy measures. Positive Indigenization Lists prohibit imports of hundreds of defence items that can be sourced domestically, while foreign OEMs must partner with Indian companies as a condition for market access. The Government of India has designated semiconductors as a sector of strategic national importance under the India Semiconductor Mission.

Source: None/Company/INE848A01014/34d84b61-b201-4461-a480-8b38fec0fca6.pdf