Japan is increasingly becoming a pivotal partner in India's ambitious drive to establish a robust domestic semiconductor ecosystem. During SEMICON India 2026, several leading Japanese firms unveiled substantial plans for the Indian market, focusing on critical areas such as materials, automation, equipment, and technology collaboration.
Strategic Investments in Semiconductor Materials
Fujifilm is leading the charge with an investment of Rs 800 crore ($83 million) into a new greenfield semiconductor materials manufacturing facility in India. This two-phase project, aligned with the India Semiconductor Mission (ISM) 2.0, aims to bolster the front-end semiconductor materials ecosystem and enhance local supply chain resilience. Phase 1, targeting groundbreaking in financial year 2026 and commercial production by 2028, will focus on front-end process chemicals.
Furthermore, Fujifilm has inked a Memorandum of Understanding (MoU) with Tata Electronics. This partnership will leverage Fujifilm's global expertise to develop and supply advanced semiconductor materials for Tata Electronics' forthcoming semiconductor fabrication plant in Dholera, Gujarat.
Another key player in materials, Sumitomo Chemical, has also entered an MoU with Tata Electronics. Sumitomo plans to supply essential semiconductor materials, including photoresists, functional chemicals, and high-purity chemicals like hydrogen peroxide and isopropyl alcohol, for the Dholera fab. Tata Electronics will also support Sumitomo Chemical in exploring local manufacturing of these critical materials in India.
Advancing Equipment and Technology
Beyond materials, Japanese companies are addressing other vital segments of the semiconductor supply chain. Hirata Corporation, a Japanese automation and semiconductor equipment manufacturer, will make its standard semiconductor automation and material handling portfolio available in India through ATS India. This includes essential components like Equipment Front End Modules (EFEM), FOPLP load ports, and high-performance wafer handling robots crucial for manufacturing and advanced packaging.
On the technology and engineering front, Tokyo Electron is establishing a new development site in Bengaluru. This facility will concentrate on software development, including equipment design and simulation. The company also intends to foster joint research on next-generation semiconductor technologies with Indian universities and academic institutions.
Deepening Bilateral Semiconductor Ties
The collaboration between the two nations' semiconductor industries is not new. In 2024, Japanese chipmaker Renesas partnered with CG Power for an Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, contributing advanced semiconductor technology and expertise.
These collective efforts underscore a deepening Japanese role in India's semiconductor ambitions, spanning from raw materials and chemicals to sophisticated equipment, automation, software, and cutting-edge technology. As India's chip manufacturing projects move closer to production, Japan's established capabilities across these supporting layers are set to become an increasingly integral part of the emerging ecosystem.