According to Bloomberg, Tokyo Electron plans to recruit and train local engineers in India to support the country's growing semiconductor industry. This initiative aligns with the Indian government's efforts to promote domestic chip manufacturing.
The company aims to establish a team of engineers by 2026 to provide technical services to Tata Electronics, a major player in India's semiconductor sector. Tokyo Electron will leverage robotics and offer in-person and remote support from Japan to assist the local team. While the exact number of engineers required is not specified, this investment reflects Tokyo Electron's commitment to India's semiconductor development.
The Tokyo-based company aims to hire 10,000 new employees worldwide in the next five years as countries increasingly compete to establish domestic chip production.
In a previous report by Nikkei, Tokyo Electron pledged to provide comprehensive support to Tata Electronics to ensure the success of India's first commercial wafer fab in decades. Tokyo Electron's strong market position in semiconductor equipment positions it as an essential partner for India's semiconductor ambitions. The company's involvement signifies a significant step towards establishing a robust local chipmaking ecosystem in India.
Before SEMICON India 2024 held in mid-September, Tokyo Electron announced it had signed a memorandum of understanding (MoU) with Tata Electronics. The two companies will collaborate to accelerate semiconductor equipment infrastructure for Tata Electronics' first wafer fab to be built in Dholera, Gujarat, and for its assembly and test facility in Jagiroad, Assam.
The growing focus on India comes as the US intensifies curbs against China's chip ambitions. Tokyo Electron's CEO, Toshiki Kawai, has dismissed concerns about US restrictions on its ability to service its machines in China. He believes that the global demand for semiconductor manufacturing equipment remains strong and that India's growing semiconductor industry will continue to contribute to Tokyo Electron's revenue. While sales to China may decline due to US restrictions, Kawai expects India to emerge as a significant market for chipmaking equipment, further driving the company's growth.
Tokyo Electron global workforce | ||||
FY | Japan | Rest of Asia | Eruope and Midde East | North America |
FY2020 | 7,806 | 3,494 | 528 | 1,714 |
FY2021 | 7,921 | 3,796 | 509 | 1,796 |
FY2022 | 8,234 | 4,328 | 578 | 2,000 |
FY2023 | 8,796 | 4,819 | 669 | 2,321 |
FY2024 | 9,150 | 4,854 | 708 | 2,359 |
Source: Tokyo Electron, September 2024
Tokyo Electron sales by region (%) | |||
FY | China | Taiwan | SEA and others |
1QFY24 | 39.3 | 16.3 | 2.4 |
2Q | 42.8 | 9.3 | 3.5 |
3Q | 46.9 | 10.0 | 2.8 |
4Q | 47.4 | 10.1 | 3.2 |
1QFY25 | 49.9 | 14.4 | 3.1 |
Source: Tokyo Electron, September 2024
