After global giants like Lam Research and Applied Materials, now Tokyo Electron eyes India for semiconductor manufacturing as the country ramps up its semiconductor ambitions.
Tokyo Electron, a partner of Tata Electronics, is the latest fab toolmaker considering setting up a manufacturing presence in India, as the country’s semiconductor ambitions gain momentum.
In an Economic Times report, Vaidya Bharadwaj, the Project Director for Tokyo Electron India, highlighted that while local manufacturing is not a priority in the short term, the company is keen to align its operations with India’s market demands.
Currently, most of Tokyo Electron’s manufacturing, including the production of advanced machines such as wafer bonders and etchers, takes place in Japan, with a smaller presence in the US. However, the company plans to establish part of its supply chain in India in the long run.
This announcement follows a broader trend of international semiconductor giants who are expressing their interest in India. Last month, there was a similar move by Lam Research, a California-based semiconductor firm, which recently committed to a ₹100 billion investment in Karnataka.
Lam Research’s tools are used in wafer processing and wiring for semiconductor devices, and the new unit will enable the company to design, test, and validate semiconductor manufacturing processes locally.
Furthermore, in 2024, Applied Materials, another major player in the semiconductor tools market, was reported to be considering setting up a manufacturing facility in India, though the focus of its operations remains unclear.
Tokyo Electron is working closely with Tata Electronics on its semiconductor fab in Dholera, Gujarat, and its OSAT facility in Assam.
Bharadwaj revealed that the company is scouting locations near the Dholera fab to establish critical support infrastructure, emphasising the importance of proximity for efficient operations.
With the Indian government’s focus on developing legacy semiconductor nodes, experts predict that the country will attract significant investments in the coming years, solidifying its position in the global semiconductor market.
