Tokyo Electron Aims to Strengthen India’s Semiconductor Landscape with Local Engineering Team!

Tokyo Electron has announced plans to establish a dedicated team of chip engineers in India to support the Narendra Modi government’s initiative to boost semiconductor production in the country. By 2026, the company intends to engage and train local engineers, who will first provide technical services to Tata Electronics Pvt. As part of this effort, there will be a growing emphasis on robotics, with local professionals receiving both on-site and virtual support from Japan.

India is actively working to attract international electronics companies and chipmakers to set up manufacturing facilities, aiming to bridge the technology gap with more advanced economies. Companies like Apple are ramping up their production and sales of iPhones in India, while Tata Group and others are investing billions in semiconductor fabrication plants. The Indian government is incentivizing these ventures, which require advanced machinery and expertise from firms like Tokyo Electron.

In a competitive landscape where nations are vying to increase domestic chip production, Tokyo Electron plans to hire an additional 10,000 employees globally over the next five years. The company supplies essential equipment to major players such as Intel, SK Hynix, Samsung Electronics, and Taiwan Semiconductor Manufacturing Co. For the fiscal year ending in March, it expects record sales and operating profits. Furthermore, projections indicate that demand for semiconductors will quadruple by 2030, driven by advancements in artificial intelligence, autonomous vehicles, and sustainability initiatives.

Toshiki Kawai, Chief Executive Officer, reaffirmed the critical role of semiconductors, stating that investment in this sector will always be necessary. The Modi administration has approved over $15 billion in semiconductor investments, including a $2.75 billion assembly facility from Micron Technology and a $10 billion fabrication plant by Tower Semiconductor in collaboration with billionaire Gautam Adani.

As equipment sales rise, projections indicate that sales to China may fall below 40% from October to March, stabilizing between 25% and 30% moving forward. Kawai noted that while India won’t replace the Chinese market, there is significant potential for growth alongside it.

Tokyo Electron’s stock has seen fluctuations since reaching a record high in April, with shares increasing by about 2% this year, partly due to changing investor sentiment regarding AI. Kawai emphasized the need to look beyond the current focus on AI, recognizing the vast growth potential in the semiconductor sector.