Japan is leading the charge in investing in India's semiconductor sector, with South Korea and Taiwan closely following. Japanese companies, known for their expertise in manufacturing equipment and raw materials, are already establishing a strong foothold.
Japanese Foreign Direct Investment (FDI) in India saw a remarkable 700% increase between 2017-2020 and 2021-2024, exceeding the growth rate of even the US. This is highlighted by the large delegation sent to the SemiConnect event in Gujarat.
South Korea and Taiwan are actively seeking to increase their presence. Korean companies are drawn to India's manufacturing hub status and potential to diversify away from China. Taiwanese and South Korean companies are studying the Japanese model, focusing on partnerships and adapting to India's regulations.
Japanese companies view India's growth in technologies like automotive, IoT, and 5G as a significant opportunity. They are actively collaborating with local players to develop the supply chain and train the workforce. The Indian government's focus on local production and incentives further attracts investment.