Pune: The Indian ecosystem is not yet ready for semiconductor manufacturing since it must import a large amount of technology, machines, and raw materials from countries such as China and South Korea, according to a Mitsubishi Electric India executive.

Although the corporation sees an opportunity in the sector in India, it has not finalized plans to open a branch there.

"At the moment, there are no plans." We have forwarded your feedback on the semiconductor industry advances in India to the global headquarters. This is a great opportunity, but the specific strategy has yet to be finalized," said Kazuhiko Tamura, MD of the Japanese company's Indian arm. The parent firm operates a power conductor facility in Japan and has undertaken investments to boost production capacity by 2026. According to its annual report for 2022, these expenditures will meet the expanding global demand for semiconductors.

This is the time for India to improve its technology capabilities, but it will take some time to establish that environment. Other issues in India include the availability of clean water and air, both of which are crucial for semiconductor manufacturing, he said.

The semiconductor business is thriving in India, with proposals from foreign firms hoping to establish manufacturing operations there. Union Minister for Communications, Electronics and Information Technology Ashwini Vaisnaw recently stated that agreements for project milestones and incentive disbursement for Micron Technology's future semiconductor factory in Gujarat had been signed.