PM Modi's recently visited Tokyo Electron Miyagi Ltd in Sendai, Japan

Tokyo Electron Limited, one of the world’s leading semiconductor and electronics manufacturing equipment companies, has expressed strong optimism about India’s fast-emerging semiconductor ecosystem. Fumihiko “Ray” Kaminaga, Senior Vice President and General Manager of Tokyo Electron, speaking at SEMICON India 2025, underscored the immense potential of India to evolve into a global semiconductor hub.

Kaminaga emphasised that the combination of growing domestic demand, an expanding technology ecosystem, and proactive government support led by Prime Minister Narendra Modi would help position India as one of the major centres of semiconductor innovation and production worldwide. He noted that the company sees a "great opportunity" in India and is confident about the country’s ability to play a transformative role in reshaping the global semiconductor supply chain.

Outlining Tokyo Electron’s expansion strategy in India, Kaminaga revealed that the company will soon establish a dedicated office in Bangalore, a city already recognised as India’s premier technology and innovation hub. Additionally, Tokyo Electron will set up operations in Ahmedabad and the strategically important Dholera Special Investment Region (SIR) in Gujarat, where significant semiconductor manufacturing facilities and industrial infrastructure are under development.

Importantly, the company is deepening collaboration with leading Indian technology firms such as HCL and TATA Consultancy Services (TCS), indicating a serious commitment to co-developing localised hardware and software solutions. This collaboration could enable knowledge transfer, capacity building, and skill development in India’s engineering sector, providing employment opportunities for Indian talent while strengthening Tokyo Electron’s supply chain integration within the country.

This announcement comes against the backdrop of the India-Japan summit held in Sendai, where Prime Minister Modi, accompanied by Japanese Prime Minister Shigeru Ishiba, visited Tokyo Electron’s advanced factory facility on August 30, 2025. During the visit, the leaders toured the Production Innovation Lab and Training Rooms and engaged directly with company executives to discuss semiconductor cooperation.

Modi emphasised that semiconductors were a crucial pillar of India-Japan strategic partnership, underlining that India had made significant progress in chip research, design, packaging, and manufacturing over the last few years.

The Indian Prime Minister also highlighted the increasing involvement of young engineers and innovators in the semiconductor sector, framing it as an industry of the future that would help India harness global opportunities. PM Modi’s remarks reinforced that India’s partnership with Japan in semiconductors is not just about industrial investment but also about building innovation capacity and human capital for the future.

The bilateral backdrop of this cooperation is highly significant. Japan, keen to revive its domestic semiconductor manufacturing capacity, has recently launched major initiatives such as the development of a semiconductor facility in Sendai by Powerchip Semiconductor Manufacturing Corporation (PSMC) in collaboration with SBI Holdings and other Japanese partners under the banner of Japan Semiconductor Manufacturing Company (JSMC).

This facility, located in Ohira Village, Miyagi Prefecture, represents one of Japan’s most ambitious attempts to regain leadership in a sector considered vital for national economic security and technological competitiveness. By establishing strong industrial linkages with India at this juncture, Japan is seeking not only to leverage India’s cost efficiencies and engineering talent pool but also to diversify and secure its supply chains.

For India, Tokyo Electron’s long-term commitments symbolise more than just foreign investment. They mark an important moment in India’s drive to reduce its dependence on imported chips, expand its domestic manufacturing footprint, and participate meaningfully in shaping the global semiconductor value chain.

With semiconductors underpinning industries ranging from telecommunications and automobiles to artificial intelligence and defence electronics, India’s ambition to become a credible manufacturing and design hub aligns strategically with Japan’s goal of diversifying partnerships across geopolitically trusted partners.

Moreover, the deepening of ties in complementary areas such as artificial intelligence, critical minerals, and clean energy underscores a holistic framework for India-Japan economic cooperation, one rooted in shared security concerns and long-term technological aspirations.

Tokyo Electron’s expansion into India, supported by strong political backing at the highest levels of both governments, positions the India-Japan partnership as a vital axis in the global semiconductor landscape. India stands to gain not just in terms of investment and job creation but also in terms of access to cutting-edge semiconductor manufacturing technologies.

Japan, in turn, secures a reliable and mutually beneficial partner in its efforts to enhance semiconductor resilience and reduce over-dependence on other regions. Together, both nations are shaping a powerful collaboration that strengthens their respective industries while contributing to the stability and diversification of the global semiconductor supply chain.

Based On ANI Report