Renesas Electronics Targets India for Over 10% of Sales by 2030
TOKYO – Renesas Electronics, a leading Japanese chipmaker, has ambitious plans to boost its presence in India, aiming to increase its sales in the country from less than 5% in 2022 to between 10% and 15% by 2030. The company is targeting the burgeoning industrial equipment and tech sectors in India’s rapidly growing economy.
Strategic Collaboration and Workforce Expansion
In an effort to address the shortage of software engineers in Japan, Renesas plans to significantly expand its workforce in India, growing from approximately 50 employees in 2019 to as many as 1,000 by 2025. CEO Hidetoshi Shibata highlighted the importance of collaborating with prestigious educational institutions like the Indian Institutes of Technology (IITs) to tap into the country’s talent pool.
Product Offerings and Market Focus
Renesas is set to offer products that combine its microcontroller technology with analog semiconductors, targeting both small and medium-sized businesses as well as large corporations. This approach is designed to leverage the strengths of its technological innovations to meet diverse market needs.
Recent Developments and Partnerships
In 2022, Renesas partnered with the Tata Group, a major Indian conglomerate, on chip design and development, establishing a joint development center in India. The company also plans to start operating a chip assembly and testing plant through a joint venture with an Indian company by 2026. This move aligns with similar strategies by global competitors like U.S.-based Advanced Micro Devices, which are also expanding their presence in India.
India-Japan Semiconductor Agreement
In a significant development, India and Japan have signed an agreement for the joint development of semiconductors. This partnership aims to strengthen the semiconductor supply chain through collaboration in design, manufacturing, equipment research, and talent development. The memorandum was signed by India’s Ashwini Vaishnaw, Minister for Railways, Communications, Electronics, and Information Technology, and Japan’s Minister of Economy, Trade, and Industry, Yasutoshi Nishimura.
Global Shifts in Semiconductor Manufacturing
The global semiconductor industry is witnessing a shift away from China due to rising labor costs and increased regulatory scrutiny. India, under Prime Minister Narendra Modi’s “Make in India” initiative, is positioning itself as a key player in the global semiconductor market. This initiative is part of a broader strategy to attract foreign investment and enhance India’s manufacturing capabilities.
Conclusion
Renesas Electronics’ expansion in India is a testament to the country’s growing significance in the global semiconductor industry. Through strategic partnerships, workforce expansion, and collaboration with local universities, Renesas is poised to capitalize on India’s vibrant market and talent pool. This move is part of a larger trend of global semiconductor companies reevaluating their supply chain strategies to reduce dependence on China and enhance regional stability.
Stay tuned for more updates on this exciting development and other industry news!
Source Curtsey: https://asia.nikkei.com/
