Tokyo Electron To Expand India Footprint With Manufacturing Hub

SUMMARY

While localisation is not an immediate priority, Tokyo Electron is eager to align with India's market needs

Currently, most of its manufacturing work is carried out in Japan, with a smaller presence in the US

In September last year, the company signed a memorandum of understanding (MoU) with Tata Electronics for semiconductor equipment infrastructure

Amid the government’s push in boosting India’s semiconductor sector, Japanese semicon firm Tokyo Electron Limited (TEL) is reportedly looking to set up its manufacturing presence in the country.

“While localisation is not an immediate priority, Tokyo Electron is eager to align with India’s market needs,” ET reported, citing TEL India Project’s director Vaidya Bharadwaj.

Inc42 has reached out to Bharadwaj for comments on the development. The story will be updated based on his response.

“For us, manufacturing involves assembling components to create advanced machines such as coater/developers, etchers, cleaners, wafer bonders/debonders, and test systems. Currently, most of this work is carried out in Japan, with a smaller presence in the US,” Bharadwaj was quoted as saying in the report.

Established in 1963, TEL is Minato, Tokyo-based global semiconductor production equipment maker, which offers its products and services to customers across regions such as the US, Europe and Asia.

In September last year, the company signed a memorandum of understanding (MoU) with Tata Electronics for semiconductor equipment infrastructure, where TEL agreed to offer support to the latter in accelerating the infrastructure at its ongoing semiconductor fab project in Gujarat’s Dholera and assembly and testing facility in Assam’s Jagiroad.

Amid rising demand for faster and more efficient chips, the Centre is giving the semiconductor industry a much-needed push. The government’s ‘Make in India’ initiative further reinforces efforts to reduce dependency on imports and strengthen the domestic tech ecosystem.

Not to mention, partnerships with global semiconductor giants, including AMD, Micron, and Qualcomm, have complemented these initiatives.

Earlier this year, electronics manufacturer Dixon Technologies was in discussions to set up a $3 Bn display fabrication facility in India.

Meanwhile, companies from across the globe have been establishing their fab facilities in India last year, including Foxconn, Sharp, Powerchip Semiconductor Manufacturing Corporation, among others.

According to a recent report of Inc42, the Indian semiconductor market is projected to become a $150 Bn opportunity by 2030.