To help Prime Minister Modi’s ambitions to ramp up semiconductor manufacturing, Japan’s leading conglomerate Tokyo Electron plans to partner with Tata to train and hire Indian engineers. A news package about it.
The Central government led by Prime Minister Modi had invited international electronics companies and chip manufacturers to invest in India.
Prime Minister Modi had announced that in future, all the chips used by the world will be manufactured in India. Accordingly, the central government is making significant efforts to establish semiconductor manufacturing facilities in India.
The objective of the Semiconductor Program is to bridge the technology gap with developed economies. For this, the central government has approved more than USD 15 billion in semiconductor investments.
US memory maker Micron Technology has started chip assembly production with an investment of US$2.75 billion. Tower Semiconductor Israel is set to set up a fabrication plant in India with an investment of USD 10 billion.
Earlier, Tata had set up India’s first semiconductor fabrication facility. Tata Electronics has set up a chip fabrication plant in Gujarat with a total investment of Rs 91,000 crore. Not only this, it has also invested Rs 27,000 crore separately in a greenfield facility in Assam for assembly and testing of semiconductor chips.
In this case, Tokyo Electron, a Japanese electronics and semiconductor company, has agreed to provide training to Tata Electronics employees on equipment and to help with modern technology advancement and development research.
Both the companies said that they will leverage their strengths and collaboration to create a strong semiconductor manufacturing ecosystem in India.
China is a key market for Tokyo Electron, which aims to hire 10,000 new employees worldwide over the next five years. The US government is urging Japan to reduce production in China.
In this case, Tokyo Electron has joined forces with Tata in India. This is expected to reduce sales to China by up to 30 percent.
Tokyo Electron CEO Toshiki Kawai is confident that the joint venture with Tata will curb the decline in Tokyo Electron’s share price and make it more profitable.
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