September 8, 2025

Fujifilm to Invest in India’s Growing Semiconductor Ecosystem

Fujifilm has announced plans to build a semiconductor materials plant in India, with operations expected to start around 2028. The decision supports India’s national effort to boost its semiconductor sector and reflects the global realignment of supply chains amid the ongoing U.S.–China conflict. For Japanese firms known for their expertise in materials and manufacturing equipment, India is becoming a promising market.

Fujifilm’s Investment Strategy in India

To achieve this plan, Fujifilm will acquire land in the western state of Gujarat by the end of 2025 and start construction as early as 2026. The investment, expected to total several billion yen, will focus on producing essential chemicals and developers used to remove impurities during semiconductor manufacturing.

The company will initially supply materials to Tata Electronics, a semiconductor manufacturer within the major conglomerate Tata Group. Tata is partnering with Taiwan's Power Semiconductor Manufacturing Co., Ltd. (PSMC) to build a factory in Gujarat that will handle the "front-end" of semiconductors. The factory is scheduled to start operations in 2026 and will produce semiconductors for automotive use, which are not cutting-edge products.

The Indian government and Tata Electronics have expressed their intention to develop a domestic semiconductor supply chain, including raw materials, for economic security. Since some semiconductors' raw materials are produced in China, they aim to produce them locally to reduce dependency on China.

Fujifilm is expected to supply India from existing facilities in Europe, the United States, and Asia until its own local factory becomes operational. Fujifilm will also provide semiconductor supplies to factories in India other than Tata Electronics and is considering exports to Asian countries such as Singapore.

India’s Effort to Build a Domestic Semiconductor Supply Chain

Semiconductors are a vital material for manufacturing electronic devices and automobiles. However, production has been focused in a few countries and regions, such as South Korea and Taiwan. As supply networks become more fragmented due to the COVID-19 pandemic and the U.S.–China conflict, each country and region is supporting local production.

The Indian government announced it will invest 760 billion rupees (about 1.3 trillion yen) in semiconductor and liquid crystal display production in 2021. Foreign companies are also entering the country one after another, with Renesas Electronics forming a joint venture with a local conglomerate. Construction has already begun on a factory in Gujarat that will assemble and inspect semiconductors.

In anticipation of market expansion, Japanese companies producing materials and manufacturing equipment are entering the Indian market. Sumitomo Chemical is considering supplying cleaning chemicals to India. Among equipment manufacturers, Tokyo Electron plans to establish a new facility for equipment design and software development by 2025.

The shift away from China is gaining momentum amid U.S. tariff policies, with India rising in comparison. Apple CEO Tim Cook announced that "the majority of iPhones sold in the U.S. between April and June will be produced in India." The trend of semiconductor and electronic component suppliers reviewing their supply chains is expected to continue growing.