Japanese firms are keen to set up semiconductor plants in India and have the required skills and knowledge to work alongside domestic companies. It also stated that a talented workforce, financial backing, and continuous support initiatives are crucial for enhancing the development of India's semiconductor sector.

Shingo Kamaya, Deloitte AP and SRT Leader at Deloitte Japan, stated that Japanese companies are "extremely eager" about India.

In July, Japan joined the US as the second Quad partner to sign a pact with India for collaboratively developing the semiconductor ecosystem and ensuring the resilience of its global supply chain. The two nations finalized the memorandum focusing on semiconductor design, production, equipment research, talent development, and enhancing the resilience of the semiconductor supply chain.

Japan, boasting nearly 100 semiconductor production facilities, ranks among the top five nations with a semiconductor ecosystem. Japan is home to companies that are worldwide leaders in the raw forms of semiconductor wafers, chemicals and gases, lenses utilized in chip manufacturing equipment, as well as display technologies. India aims to establish 10 semiconductor manufacturing facilities within a decade.

"Given the technology, given the specialization, there is no better partner to get on to developing such an ambitious and a critical ecosystem of semiconductor than Japan," Rohit Berry, President - Strategy, Risk and Transactions, Deloitte India, said.

He said that the semiconductor story in the country is not just about setting up one factory, but it is about that entire ecosystem.