Tokyo Electron to Boost Semiconductor Production with New Team in India
Kawai pointed out that India cannot replace the Chinese market, but both can grow together
Tokyo Electron manufacturing unit.
Tokyo Electron plans to create a team of chip engineers in India to help the Modi government increase semiconductor production.
By 2026, they plan to educate local engineers to offer technical support to Tata Electronics Pvt., with help from Japan.
India is trying to attract global electronics companies to reduce its technology gap with advanced economies.
Apple is expanding iPhone production in India, and Tata Group is investing heavily in semiconductor plants, supported by government incentives.
To meet rising demand, Tokyo Electron plans to hire 10,000 more employees globally over the next five years.
The company supplies equipment to major firms like Intel and Samsung and expects strong sales for the fiscal year ending in March.
They project that chip demand will quadruple by 2030, driven by advances in AI, self-driving cars, and sustainability efforts.
CEO Toshiki Kawai stressed the ongoing importance of semiconductors. The Modi government has approved over $15 billion in semiconductor investments, including a $2.75 billion facility by Micron Technology and a $10 billion plant by Tower Semiconductor in partnership with Gautam Adani.
While overall equipment sales are expected to grow, sales to China may decline from 40% to between 25% and 30%.
Kawai pointed out that India cannot replace the Chinese market, but both can grow together.
Although Tokyo Electron's stock has fallen since its peak in April, shares have increased by about 2% this year. Kawai believes the market focuses too much on AI and overlooks broader growth potential.
