Japanese semiconductor companies are expanding in India to benefit from Prime Minister Narendra Modi's drive to build a domestic chip industry, Kyodo News reported on October 7. More than 30 Japanese firms took part in Semicon India 2026, held in New Delhi from September 17 to 19.

India wants to become a global chipmaking centre and is building a supply chain covering materials, design, fabrication, packaging and testing. Modi has pledged to lift state support for the sector to about $13.5bn from roughly $8bn as the India Semiconductor Mission enters its second phase. The first phase approved 12 manufacturing and packaging projects. Industry executives say the country still lacks specialised suppliers and skilled workers.

In July, Modi and Japanese Prime Minister Sanae Takaichi agreed to deepen cooperation in chips and other industries. Japanese companies signed about 120 memorandums of cooperation covering investments worth JPY2tn ($12.6bn).

Fujifilm Corp. has agreed to develop and supply advanced chip materials for Tata Electronics Pvt. Ltd. "Fujifilm sees value in bringing manufacturing and technical support closer to customers, as India's semiconductor ecosystem develops," Koji Wada, managing director of Fujifilm India Pvt. Ltd., told Kyodo News.

Sumitomo Chemical Co. is weighing a partnership with Tata Electronics to build a materials supply chain. Enomoto Co. will give the Indian firm support on production technology.

Shetal Mehta, director of Gujarat-based Suchi Semicon Pvt. Ltd., which started commercial output during the event, said his company relies heavily on Japanese partners. "We are working with a lot of equipment and material vendors from Japan," Mehta told Kyodo News, adding that the firm has Japanese advisers and sources raw materials from Japan.

Mani Rajesh Kumar, business head of the materials and semiconductor solutions department at Horiba India Pvt. Ltd., said India has plenty of engineers but too few with chip-specific skills.

Toshiki Kawai, chief executive of Tokyo Electron Ltd., said the equipment maker plans to open a training centre in Gujarat in 2027 with the Japanese government to train equipment engineers.

Firms from other countries are also investing. Applied Materials Inc. of the US said it will invest $5bn in India over the next decade. Lam Research Corp. plans to spend about INR100bn ($1bn) in the coming years.

South Korea's Hae Kwang Co., which supplies semiconductor facilities, is working on a new project in Gujarat. "Yes, demand is increasing," said Tae Gyu Ha, a senior manager at the company.