Japan super interested in India’s growing chip sector? Reports say, citing Deloitte, that Japanese firms are eager to power India’s semiconductor future with partnerships, and strong government support for long-term growth.
Japanese companies are eager to establish semiconductor operations in India, bringing their expertise to partner with local firms, according to a report by the Economic Times. It cited Deloitte, as the firm highlighted that India’s semiconductor sector growth relies on a skilled workforce, funding, and sustained support policies.
Shingo Kamaya, Deloitte AP and SRT Leader from Deloitte Japan noted that Japanese businesses are enthusiastic about India’s potential. In July, Japan became the second Quad nation, after the US, to sign a partnership with India to develop the semiconductor ecosystem and enhance global supply chain resilience.
This agreement covers semiconductor design, manufacturing, equipment research, talent development, and supply chain robustness.
Japan, home to around 100 semiconductor manufacturing plants, reportedly ranks among the top five countries in the sector. The country is a leader in producing semiconductor wafers, chemicals, gases, lenses for chip-making equipment, and display technologies.
Subsequently, India aims to establish ten semiconductor manufacturing plants over the next decade.
Rohit Berry, President of Strategy, Risk, and Transactions at Deloitte India, also emphasised Japan’s crucial role in building this ecosystem. He stressed that semiconductor development in India is not limited to setting up individual factories but requires building a comprehensive ecosystem, which Japanese companies are experienced in creating.
Berry highlighted the importance of strong partnerships between Indian and Japanese firms for the sector’s long-term success. He noted that this is a long-term venture, offering benefits to both countries for generations. He also pointed out that the Indian government’s sustained incentive programme will be vital for the sector’s growth.
Regarding specific support from state governments, he suggested that a collaborative partnership between the central and state governments, along with private and Japanese companies, is essential to establish a groundbreaking setup for India’s semiconductor industry.
