Japanese firms eager to invest in India’s semiconductor sector: Deloitte

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Japanese firms eager to invest in India’s semiconductor sector: Deloitte

Japanese firms eager to invest in India’s semiconductor sector: Deloitte

Industry News
Dec 04,24

In July, Japan joined the US as the second Quad partner to sign a memorandum of understanding with India, focusing on collaborative development in semiconductor design, manufacturing, equipment research, talent cultivation, and boosting supply chain resilience.

Japanese firms eager to invest in India’s semiconductor sector: Deloitte

Japanese companies are keen to invest in India’s semiconductor manufacturing sector, bringing valuable expertise and collaboration opportunities, according to a report by Deloitte. The report emphasised the importance of a skilled workforce, financial resources, and continuous government support to foster growth in India’s semiconductor industry.

Shingo Kamaya, Deloitte AP and SRT Leader, Deloitte Japan, expressed strong enthusiasm from Japanese firms for India’s potential in the sector.

Japan, which boasts approximately 100 semiconductor manufacturing plants, ranks among the top five global players in the industry. The country is home to leading companies specialising in semiconductor wafers, chemicals, gases, chip manufacturing equipment lenses, and display technologies.

India aims to build ten semiconductor manufacturing facilities within the next decade.

Rohit Berry, President- Strategy, Risk, and Transactions, Deloitte India, highlighted Japan’s critical role in this ambitious plan. “Given the technology and specialisation, there is no better partner than Japan to help develop such an essential semiconductor ecosystem,” Berry said.

He pointed out that building a semiconductor ecosystem goes beyond constructing a single plant and requires creating an interconnected support system. Japanese companies, with their proven expertise in establishing such ecosystems, will be instrumental in realising this vision. “This is a grand plan. This is investment and commitment,” he added.

Berry stressed the importance of partnerships between Indian and Japanese firms to ensure sustainable growth. “This is not a one-year or two-year project. It will benefit both countries for generations,” he noted.

He also emphasised that India's government incentive programs would play a pivotal role in sector development. For the initiative to succeed, Berry called for strong coordination between central and state governments, as well as private and Japanese partners. “A collaborative approach will be essential to create a once-in-a-lifetime opportunity,” he said.

(abplive)