Japanese companies are eager to establish semiconductor manufacturing units in India, bringing the expertise and specialization needed to collaborate with domestic companies, according to a Deloitte report. The company highlighted that skilled workforce, access to funds and sustainable support measures are critical to drive the growth of the Indian semiconductor sector.

Shingo Kamaya, Deloitte AP and SRT Leader at Deloitte Japan said Japanese companies are “very excited” about India’s potential.

In July, Japan became the second Quad partner, after the United States, to sign an agreement with India aimed at jointly developing the semiconductor ecosystem and strengthening the resilience of global supply chains. The MoU focuses on design, manufacturing, equipment sourcing, talent development and improving supply chain resilience.

With around 100 semiconductor manufacturing plants, Japan ranks among the top five countries in the global semiconductor ecosystem. It is home to world-leading companies in the production of semiconductor wafers, chemicals and gases, lenses used in chip manufacturing equipment, and display technologies.

India aims to set up ten semiconductor manufacturing plants in the next decade. Rohit Berry, president of strategy, risk and transactions at Deloitte India, said: “Given the technology and specialization, there is no better partner than Japan to embark on the development of ‘such an ambitious and critical semiconductor ecosystem. »

He explained that the semiconductor narrative in the country goes beyond the construction of a single factory and encompasses the development of the entire ecosystem.

“And that’s where a lot of Japanese companies that have set up such ecosystems in Japan or elsewhere are going to be absolutely key to setting them up (in India). So that’s the vision. It’s a big plan. C “It’s the investment. It’s the commitment,” he added.

Berry also said that establishing proper partnerships between Indian and Japanese companies was crucial for the growth of the sector. “This is not a one-year match, nor a two-year match. It will basically benefit us and Japan for generations,” he said.

He further highlighted that the government’s sustained incentive package will play a key role in the growth of the sector in India.

Asked about specific support measures from the state governments, he noted that a “partnership between the center and the state, as well as the private and Japanese partnership, all four together, will be a prerequisite to create a unique setup” .

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