India’s ambitions to become a major player in the global semiconductor industry are gaining momentum, with Japan taking the early lead and South Korea and Taiwan now stepping up their involvement. Industry insiders say these countries are increasing collaboration with Indian partners, bringing advanced technology, investments, and workforce development to support the nation's chip-making capabilities. Their interest aligns closely with India’s government-led incentives to boost domestic semiconductor manufacturing and supply chains.

Japan’s Head Start

Japanese companies were among the first to engage with India’s semiconductor ambitions, drawing on their strengths in manufacturing equipment and raw materials. Takashi Suzuki, Director General at the Japan External Trade Organisation (JETRO), emphasised Japan’s global dominance in semiconductor manufacturing tools and components, holding a 30% share in equipment and 48% in materials. These capabilities, he noted, are crucial for developing a robust supply chain in India.

The impact is already visible. Between 2017 and 2020, Japan made only one foreign direct investment (FDI) in India’s semiconductor sector. That figure jumped to eight investments from 2021 to 2024, reflecting a 700% increase—the highest among all contributing nations. By comparison, U.S. investments rose from 11 to 30 during the same period, marking a 172% rise.

Further highlighting Japan’s commitment, a 75-member delegation—the largest foreign group—attended the SemiConnect event held last month in Gujarat. Japanese companies such as Tokyo Electron and Renesas are actively partnering with Indian firms to build supply chains and invest in training local talent, complementing India’s Make in India push and various manufacturing-linked incentive schemes.

South Korea and Taiwan

South Korea and Taiwan, though slower to enter the Indian market, are quickly making up for lost time. Industry observers say these nations are now adopting strategies similar to Japan’s, focusing on local partnerships, adapting to India’s regulatory environment, and contributing to workforce development.

Heikki Ranta of the Finland Chamber of Commerce and Industry in Korea noted that Korean firms are shifting from their traditional subcontracting roles to a more direct participation model, bringing high-end semiconductor technologies into India.

Zena Chung from the Indo-Korea Business Culture Centre added that many Korean companies are beginning to see India as a viable and attractive alternative to China for business expansion. However, she also stressed that India must further improve infrastructure and offer stronger policy support to attract and retain Korean investment.

From Taiwan, Sana Hashmi of the Taiwan-Asia Exchange Foundation observed that both Taiwanese and Korean companies are modelling their India strategies after Japan’s early success. They are building alliances with Indian firms and aligning with long-term trends in industries such as automotive, IoT, and 5G. Still, she acknowledged that Japan maintains an advantage due to its earlier investments and more comprehensive understanding of India’s long-term growth potential.

India Becomes a Strategic Hub for Semiconductor Investment

India’s semiconductor landscape is undergoing a major transformation, with Japan leading the way and South Korea and Taiwan quickly scaling up their involvement. While all three nations bring distinct strengths, their shared focus on local partnerships, regulatory alignment, and talent development is shaping India into a promising semiconductor hub.

With growing foreign investments, increasing government support, and a focus on building complete supply chains, India is emerging as a strategic alternative to existing global semiconductor powerhouses. As companies from Japan, South Korea, and Taiwan deepen their presence, India’s semiconductor ecosystem stands poised for a significant leap forward.