Japan has emerged as a key contributor to India's semiconductor development efforts, while South Korea and Taiwan are intensifying their initiatives to match Japan's early progress, according to multiple industry sources.

Japanese companies, capitalising on their expertise in semiconductor equipment and raw materials, were among the first to engage with India's emerging chip ecosystem.

Takashi Suzuki, Director General at the Japan External Trade Organisation (JETRO), underscored Japan's substantial share in the global markets for semiconductor manufacturing equipment (30%) and parts and materials (48%). These capabilities are regarded as critical to the development of India's semiconductor supply chain.

Foreign direct investment (FDI) from Japan into India has seen a significant increase - from just one recorded investment between 2017 and 2020 to eight between 2021 and 2024 - representing a 700% rise, the highest growth rate among investing countries.

In comparison, FDI from the United States rose from 11 to 30 investments over the same periods, indicating a 172% increase.

Japan also sent the largest foreign delegation, comprising 75 members, to the SemiConnect event held in Gujarat in March, 2025, further demonstrating its commitment to supporting India's semiconductor ambitions. South Korea and Taiwan, although later entrants, are now accelerating their engagement.

Heikki Ranta of the Finland Chamber of Commerce and Industry in Korea observed that South Korea is moving beyond its traditional subcontracting role and is actively working to introduce its advanced semiconductor technologies into the Indian market.