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Japanese companies are eager to establish semiconductor manufacturing units in India and possess the expertise needed to collaborate with domestic firms, according to a report by Deloitte.

 

Deloitte report highlighted that a skilled workforce, adequate funding and continued government support will be crucial to developing India’s semiconductor sector.

 

Shingo Kamaya, Deloitte Asia Pacific and SRT Leader at Deloitte Japan, said Japanese firms are "super enthusiastic" about partnering with India. In July, Japan became the second Quad partner, after the United States, to sign an agreement with India aimed at developing the semiconductor ecosystem and ensuring the resilience of the global supply chain.

 

The memorandum signed by India and Japan covers semiconductor design, manufacturing, research on equipment, talent development and supply chain resilience. Japan, with around 100 semiconductor manufacturing plants, is among the top five countries globally with a well-developed semiconductor ecosystem.

 

Japanese companies are recognised as global leaders in producing semiconductor wafers, chemicals, gases, and lenses essential for chip manufacturing, as well as display technologies. India aims to establish 10 semiconductor manufacturing plants over the next decade.

 

Rohit Berry, President of Strategy, Risk and Transactions at Deloitte India, said Japan is the ideal partner to help India achieve its semiconductor ambitions due to its technological expertise. "The semiconductor story in India is not just about setting up a factory; it’s about building an entire ecosystem," Berry said.

 

He added that Japanese companies, which have successfully created such ecosystems in Japan and elsewhere, will play a critical role in developing the sector in India. "This is a long-term commitment that will benefit both India and Japan for generations," Berry noted.

 

Berry also stressed that sustained government incentives would be essential to the sector’s success. When asked if Japanese firms were seeking specific support from Indian states, he emphasised the importance of a collaborative approach.

 

"A centre-state partnership, combined with private and Japanese partnerships, will be necessary to create a once-in-a-lifetime setup," he said.