India’s Semiconductor Revolution: Attracting Global Players Amid Geopolitical Shifts

The chipmaking equipment industry is increasingly focusing on establishing operations in India, driven by geopolitical tensions and the country’s emerging market potential. The move is exemplified by SEMI’s decision to hold its Semicon exhibition near New Delhi, marking India’s inclusion in a global circuit that traditionally featured major economies like the U.S., Japan, and Taiwan.

Key players like Tokyo Electron, Applied Materials, and Lam Research are expanding their presence in India, attracted by the growing demand spurred by Apple’s shift of production from China, along with increasing local demand for smartphones and PCs. Indian conglomerates like Tata Group are also making significant investments, such as the planned semiconductor fab in Gujarat, bolstered by technology partnerships with global leaders like Power Semiconductor Manufacturing Co.

Despite these advancements, India faces challenges such as infrastructure deficiencies in water and electricity, limiting its capacity to attract semiconductor fabrication plants compared to China. Nevertheless, the country’s semiconductor-related market is projected to grow substantially, reaching $64 billion by 2026, driven by investments from companies like Micron Technology and Renesas Electronics.

As India aims to strengthen its semiconductor ecosystem, industry experts highlight the need for robust industrial infrastructure to support complex front-end assembly and testing processes. In the interim, there’s a focus on building clusters for back-end processes, leveraging India’s competitive advantage in labor costs.

Overall, with strategic investments and a conducive policy environment, India is poised to emerge as a significant player in the global semiconductor industry, potentially becoming one of the top five chip ecosystems by 2029, according to government projections.

Visit : http://indojapanpulse.com/

Subscribe to YouTube Page:
https://www.youtube.com/channel/UCwk4e_pL0o5eyUvkIC7cQZA/featured

Like LinkedIn Page:
https://www.linkedin.com/company/indojapanpulse

Join Facebook Community:
https://www.facebook.com/groups/436167087220812/?ref=share

We can be reached at:
contact@IndoJapanPulse.com