India Pushes Japan & South Korea to Invest in Semiconductor Manufacturing
Ahmedabad, India — As global tech rivalry intensifies, the Indian government is ramping up efforts to attract semiconductor investments from Japan, South Korea, and the United States, positioning itself as a viable alternative to China.
A major focus is the Dholera Special Investment Region (SIR) in Gujarat — a sprawling 92,000-hectare industrial hub planned to host factories, housing, commercial spaces, an airport, and port facilities, with investments exceeding ¥1 trillion.
On November 8, a delegation of 80 representatives from 40 Japanese companies toured the site, which lies 100 km from Ahmedabad. While some infrastructure — including roads and water treatment — is in place, large-scale factory construction is yet to begin. An expressway linking Dholera to Ahmedabad is scheduled for completion in 2024, but progress remains slow.
Delegates raised concerns about industrial water availability, skilled workforce, and reliable electricity — essentials for semiconductor manufacturing. Officials from the National Industrial Corridor Development Corporation (NICDC) assured “no problem” repeatedly, but the lack of detailed responses left some uneasy.
India’s “Make in India” initiative offers tax incentives for local manufacturing, with semiconductors seen as crucial to industrial growth. In June, U.S. chipmaker Micron Technology announced a flash memory plant in another Gujarat park and is considering Dholera for expansion.
Japan and India are strengthening ties in this sector — signing an MoU in July to build a semiconductor supply chain, followed by virtual talks on November 10. However, Japanese officials have cautioned that if Dholera fills up too quickly, future expansion for their companies could be at risk.
With the United States urging semiconductor firms to diversify away from China, and India seeking to become a “semiconductor superpower”, cooperation between Tokyo and New Delhi is poised to play a critical role in reshaping global tech supply chains.
