GX Group, a Dutch multinational company specializing in broadband and connectivity solutions, has revealed its intention to allocate Rs 3,000 crore across the upcoming four years to create India's inaugural domestic photonic chip and module infrastructure.

This investment represents GX Group's strategic initiative to establish India as an international center for optical data transmission technologies that support advanced AI data centers, 5G/6G telecommunications networks, LiDAR applications, and quantum communication systems.

The comprehensive Rs 3,000 crore investment encompasses establishing sophisticated design and testing facilities, creating supply chain collaborations, and progressively expanding manufacturing operations.

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The initial stage, requiring Rs 500 crore in funding, will support the construction of a production facility and research center through a newly formed subsidiary called GX Quantum Photonics Pvt. Ltd., working in partnership with Smart Photonics from the Netherlands.

Since beginning operations in India in 2018, GX Group has continuously grown its presence by establishing a production plant in Manesar in 2021 and opening its primary R&D facility in Chennai in 2022. The company currently supplies its solutions to various clients including Bharti Airtel, ACT Fibernet, Asianet, Excitel, Hathway and KCCL.

The organization is presently assessing potential locations for its upcoming photonics production facility in Rajasthan, Uttar Pradesh, and Andhra Pradesh, with Vivandi in Rajasthan being considered as a potential site.

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He mentioned that the larger Rs 3,000 crore funding will be rolled out gradually across four years to establish a comprehensive ecosystem spanning from design to final chip production, as India builds the required infrastructure and skills. Prajapati noted this investment coincides with India's rapidly growing digital infrastructure.

GX Group's technology will start by targeting optical parts for data centers and telecommunications networks, sectors representing approximately 30 percent of a data center's overall worth. The firm intends to later expand its photonics range to include other industries like electric vehicles and defense, where LiDAR sensing technology is becoming increasingly important.

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At present, India relies on imports for virtually all optical and photonic parts, a shortage that GX Group seeks to address.

GX Group has submitted applications under India's government semiconductor and component support programs, with its Small Form-factor Pluggable optical solutions already receiving approval through the telecom Production-Linked Incentive initiative. The organization has met all PLI production goals for five years and has obtained compensation for three years to date.