📷 Image Credits: Nikkei Asia
In recent years, India has been gaining attention as a potential alternative to China for chipmaking equipment companies. Amid tensions between Beijing and the West, international chip industry group SEMI will be holding its Semicon exhibition in India for the first time near New Delhi in September. This move signifies a significant shift towards establishing bases of operation in India.
Japanese companies like Tokyo Electron, Disco, Canon, Tokyo Seimitsu, and Daifuku are among the key players scheduled to attend the exhibition. Tokyo Electron, a prominent player in the chipmaking equipment industry, will showcase equipment for front-end steps in the chipmaking process like wafer deposition and coating. On the other hand, Disco is expected to exhibit equipment for back-end processes such as grinding and dicing wafers to form chips. Moreover, U.S. companies like Applied Materials, Lam Research, and KLA will also be showcasing their offerings at the exhibition.
India, although yet to attract many semiconductor fabrication plants or fabs, is slowly gaining traction as a favorable destination for chip manufacturing and procurement. With only less than 1% share of the chip equipment market compared to China’s 34%, India is witnessing a gradual surge in interest from global players. The restructuring of international supply chains away from China has further propelled India’s position as a strategic market. Major companies like Apple, Tata Group, Micron Technology, and Renesas Electronics have announced plans to build semiconductor fabs in India, indicating a definite positive trajectory for the country’s semiconductor ecosystem.
Indian conglomerate Tata Group has unveiled plans to establish a semiconductor fab in Gujarat, marking a significant milestone in India’s chipmaking landscape. The fab, set to commence operations in 2026 with a total investment of $10.9 billion, is expected to be the country’s pioneer chipmaking plant for front-end processes. These developments align with the vision of India’s electronics and information technology minister, Ashwini Vaishnaw, who envisions India as among the top five chip ecosystems globally by 2029.
The semiconductor-related market in India is projected to reach $64 billion by 2026 according to Counterpoint Technology Market Research, nearly tripling its size from 2019. With the industry poised for expansive growth, equipment makers are already beginning to establish a presence in the country. Companies like Tokyo Electron, Disco, and Advantest are considering setting up local bases and subsidiaries to cater to the growing demand for chipmaking equipment in India. As more companies venture into the Indian market, it is evident that the country’s semiconductor industry is on a promising growth trajectory, positioning itself as a leading hub for chip manufacturing and innovation.
