Fujifilm India is exploring potential supply agreements for chemicals and semiconductor raw materials with several companies as India’s silicon chip manufacturing and packaging ecosystem expands. According to Koji Wada, Managing Director of Fujifilm India, Tata Electronics is expected to be an important customer during the initial phase. However, as India develops more semiconductor manufacturing facilities, Fujifilm expects demand for semiconductor-grade chemicals and materials to increase. In addition, semiconductor packaging companies could become potential customers for the company’s specialised chemical and material products.
₹800 Crore Semiconductor Materials Facility
Fujifilm India recently announced an investment of approximately ₹800 crore to establish a greenfield semiconductor materials manufacturing facility in India. The investment will be implemented in two phases, with commercial production targeted to begin in 2027-28. The facility will be located in Dholera, Gujarat, near Tata Group’s semiconductor manufacturing unit. Initially, Fujifilm India plans to manufacture chemicals used in front-end semiconductor processes. Subsequently, the second phase will expand production to semiconductor surface-conditioning materials and high-purity chemicals.
Focus on Localising Raw Material Supply
Fujifilm India will import many of the raw materials required to manufacture these semiconductor chemicals. However, the company also plans to develop partnerships with Indian suppliers and help them build the capabilities required for semiconductor-grade production. Fujifilm could support selected Indian companies through manufacturing and technical know-how as well as technology transfer. Once these suppliers achieve the required standards, Fujifilm could eventually source raw materials from them. Several Indian companies have already expressed interest in entering the semiconductor materials sector. However, Fujifilm will assess their technical capabilities and willingness to invest before selecting potential partners.
Semiconductor-Grade Quality Requirements
Local suppliers will need to meet stringent semiconductor manufacturing standards. In particular, Fujifilm will evaluate capabilities related to metal contamination control, quality control and manufacturing processes. Therefore, developing a reliable domestic supply base will require Indian companies to invest in advanced manufacturing technologies and quality systems. This localisation could gradually strengthen India’s semiconductor materials ecosystem.
Policy Support to Strengthen Semiconductor Ecosystem
Wada also highlighted the importance of continued government support for India’s semiconductor ecosystem. According to him, appropriate incentives beyond the programmes already announced could encourage more companies to invest in silicon chip manufacturing and related activities. Moreover, developing a strong domestic supplier network could help Indian semiconductor companies become more cost-competitive with established markets such as Taiwan, Malaysia and Singapore.
Local Manufacturing Could Drive Technology Development
Although India’s semiconductor manufacturing and packaging ecosystem remains at an early stage, the emerging industry provides an opportunity for local companies to adopt advanced technologies from the beginning. As the ecosystem develops, Indian companies could also build capabilities in intellectual property and proprietary semiconductor manufacturing techniques. Fujifilm believes the first step is to bring advanced technology into India and gradually localise manufacturing. At the same time, the development of local talent, manufacturing capabilities and R&D facilities could support greater innovation and IP creation. Similar technology-development journeys have taken place in countries such as Japan, South Korea and Taiwan.
Domestic Demand Offers Long-Term Opportunity
India’s strong domestic demand could further support the development of local semiconductor technologies and capabilities. As manufacturing, talent and R&D infrastructure expand, the country could increasingly develop its own expertise across the semiconductor value chain. As reported by business-standard.com, for Fujifilm, building a local manufacturing and sourcing ecosystem will therefore be an important part of supporting India’s growing semiconductor industry.
