India's Chip Industry Rises with Support from Japan, Korea, and Taiwan

India’s ambitions to become a major player in the global semiconductor industry are gaining momentum, with Japan taking the early lead and South Korea and Taiwan now stepping up their involvement. Industry insiders say these countries are increasing collaboration with Indian partners, bringing advanced technology, investments, and workforce development to support the nation's chip-making capabilities. Their interest aligns closely with India’s government-led incentives to boost domestic semiconductor manufacturing and supply chains.

Japanese companies were among the first to engage with India’s semiconductor ambitions, drawing on their strengths in manufacturing equipment and raw materials. Takashi Suzuki, Director General at the Japan External Trade Organisation (JETRO), emphasised Japan’s global dominance in semiconductor manufacturing tools and components, holding a 30% share in equipment and 48% in materials. These capabilities, he noted, are crucial for highest level development and a robust performance supply chain in India.

The impact is already visible. Between 2017 and 2020, Japan made only one foreign direct investment (FDI) in India’s semiconductor sector. That figure jumped to eight investments from 2021 to 2024, reflecting a 700% increase—the highest among all contributing nations. By comparison, U.S. investments rose from 11 to 30 during the same period, marking a 172% rise. Further highlighting Japan’s commitment, a 75-member delegation—the largest foreign group—attended the SemiConnect event held last month in Gujarat. Japanese companies such as Tokyo Electron and Renesas are actively partnering with Indian firms to build supply chains and invest in training local talent, complementing India’s Make in India push and various manufacturing-linked incentive schemes.