Tokyo Electron will Establish a Manufacturing Hub to Increase its Footprint in India

Tokyo Electron, a partner of Tata Electronics, is the most recent fab toolmaker to consider establishing a manufacturing presence in the nation. The Tokyo Electron India Project's project director, Vaidya Bharadwaj, told reporters that although localisation is not a top priority right now, Tokyo Electron is keen to meet the demands of the Indian market. For the business, manufacturing entails putting parts together to make sophisticated devices, including test systems, wafer bonders/debonders, etchers, cleaners, and coaters/developers. The majority of this work is currently done in Japan, with a lesser amount being done in the US. According to him, Tokyo Electron's long-term localisation initiatives include establishing a portion of the supply chain in India.

International Semiconductor Manufacturers Eyeing Big on India

Only a few weeks have passed since California-based semiconductor manufacturer Lam Research announced an INR 10,000 crore investment in Karnataka, which was followed by Tokyo Electron's recent announcement. According to the corporation, Lam Research's products are utilised in semiconductor device wiring and wafer processing. The country's Lam engineers will be able to develop, test, and validate semiconductor production equipment and processes on-site thanks to the new unit. Prior to this, in 2022, Lam Research established its first engineering unit in Bengaluru. It's interesting to note that last year there were rumours that Applied Materials, another well-known company in this field, was also considering establishing a production facility in India. At the time, it was unclear, though, whether the company would concentrate on manufacturing semiconductors or its core fab tools in India. But according to certain media accounts, it was probably going to start out as a fab tool unit. The major providers that provide services to fab units worldwide are Tokyo Electron, ASML, KLA, Lam Research, and Applied Materials.

India is an Exciting Market: Bharadwaj

India is a fascinating market with a ton of prospects, according to Tokyo Electron's Bharadwaj, who also stated that the company was keen to collaborate with other companies. According to him, the business has already had conversations with a number of stakeholders and has gotten really encouraging feedback. The Dholera fab support operations are the brand's top priority right now. "Rapid progress" is being made in delivering specialised equipment while building a strong support environment," he continued, adding that the company is still dedicated to its cooperation with Tata Electronics. He added that Tokyo Electron is actively looking for sites to install support infrastructure close to Tata Electronics' semiconductor factory in Dholera. Quick response times depend on being close to customers, and Tokyo Electron's operations are normally located within a 20-minute radius of a fab.

The company intends to assemble a group of highly skilled engineers in order to create a robust ecosystem of semiconductor support. Although India's semiconductor industry is still in its infancy, he claimed that the government and industry's "pragmatic approach" of prioritising legacy nodes before moving on to high-end chips has laid what he called a "solid foundation," positioning India to become a major investment destination in this sector over the course of the next four to five years. Both businesses inked a Memorandum of Understanding in September of last year to work together to expedite the infrastructure for semiconductor equipment for Tata Electronics' first Fab in India, which is being constructed in Dholera, Gujarat, as well as for its assembly and testing plant in Jagiroad, Assam.