A factory operated by an ISM-certified company has begun operations in India's semiconductor industry. Against the backdrop of differing progress in front-end and back-end processes, attention is focusing on moves by Japanese companies to help form the market.
In 2026, factories operated by multiple companies certified under the ISM (India Semiconductor Mission) began operations in India's semiconductor industry, which is moving toward establishing a mass-production system. Although progress differs between the front-end process (chip manufacturing) and the back-end process (packaging), the Indian market has begun moving toward maturity.
Back-end plants have reportedly begun operations one after another in India, and the establishment of supply chains is expected to be the focus going forward. As the industry undergoes a structural transformation, Japanese companies are said to be in a situation where strategies that anticipate market formation are required.
With regard to India's immature semiconductor market, the view has been expressed that Japanese companies will not reap the benefits simply by waiting for the market to mature. The importance of considering local collaboration, technology transfer and local procurement has therefore been highlighted. Trends among Japanese companies in the automotive sector are also attracting attention in connection with the formation of the local market.
This series examines the current state of India's semiconductor market and how Japanese companies are approaching it from multiple perspectives, and explores its future prospects.