Japan’s chip industry capitalizes on growth in India semiconductor industry

By the Editorial Team · Wednesday, October 7, 2026

Japanese semiconductor firms are deepening their collaboration with India’s chip industry, participating in Semicon India 2026 and committing investments totaling about $12.7 billion to support the country’s semiconductor ecosystem. This partnership strengthens India’s ambition to become a global manufacturing hub under the India Semiconductor Mission, despite challenges like supplier shortages and workforce skill gaps.

Japanese semiconductor companies are intensifying their engagement with India’s burgeoning chip industry, aligning with Prime Minister Narendra Modi’s vision to establish the country as a major player in global semiconductor manufacturing. This initiative aims to develop a comprehensive domestic ecosystem covering materials, design, fabrication, packaging, and testing.

The increased collaboration was prominently highlighted at Semicon India 2026, held in New Delhi from September 17 to 19. Over 30 Japanese firms participated, and around 200 Indian and Japanese industry representatives convened for a roundtable discussion focused on partnerships, technology collaboration, resilient supply chains for materials and equipment, and joint research and development efforts.

India is advancing its ambition to become a global semiconductor hub through a government-backed program known as the India Semiconductor Mission. This initiative is entering its second phase, with Prime Minister Modi announcing plans to raise funding from approximately $8 billion to $13.5 billion to support the industry’s expansion. During the first phase, the government approved 12 semiconductor manufacturing and packaging projects, laying the groundwork for future growth.

In July, Modi and Japanese Prime Minister Sanae Takaichi agreed to deepen cooperation in the semiconductor sector and related industries. Since then, Japanese companies have signed around 120 memorandums of cooperation, involving investments valued at about two trillion yen ($12.7 billion), signaling a robust commitment to India’s chip sector.

Despite strong enthusiasm and investment, industry leaders acknowledge ongoing challenges. Shortages of specialized suppliers and skilled workers remain significant obstacles as India seeks to establish a fully integrated domestic semiconductor industry.

The expanding partnership between Japan and India reflects broader trends in the global semiconductor supply chain, as countries seek to diversify manufacturing bases and build resilience amid geopolitical and economic uncertainties. Both governments appear committed to fostering closer ties to leverage technology and investment opportunities in this critical sector.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.