Tokyo Electron plans to open its first Indian development center this summer in Bengaluru, targeting the country’s deep pool of technical talent to design chipmaking tools and develop related software. The Japanese chip equipment producer will initially deploy a small team, aiming to expand to 300 employees by 2027, primarily through local hiring.
The facility will leverage artificial intelligence to develop next-generation semiconductor manufacturing equipment and optimize production processes, including finding new materials and improving efficiency. The move follows Tokyo Electron’s September 2023 partnership with Tata Electronics for talent development.
Tata is constructing India’s first major fab in Dholera, Gujarat, with an investment of approximately ₹91,000 crore ($11 billion). Tokyo Electron plans to open a support center nearby for equipment installation and maintenance.
The expansion addresses Tokyo Electron’s growing difficulty securing software engineers in Japan, which faces a labor shortage. It also aligns with Prime Minister Narendra Modi’s push for semiconductor self-reliance, backed by substantial government subsidies.
Tokyo Electron’s American competitors have already established footholds in India, with Applied Materials and Lam Research operating development centers in the country. The global competition for semiconductor talent continues to intensify as nations worldwide vie to establish domestic chip production capabilities.
While manufacturing in India isn’t an immediate priority for Tokyo Electron, the company remains “eager to align with India’s market needs,” according to Vaidya Bharadwaj, director of TEL India Project. Industry analysts project India’s semiconductor market to become a $150 billion opportunity by 2030.
