Prime Minister Narendra Modi visited a semiconductor plant Tokyo Electron Miyagi in Sendai on his second day of Japan visit. He was accompanied by Japanese Prime Minister of Shigeru Ishiba for the visit on a bullet train. Prime Minister Modi was briefed about TEL’s role in the global semiconductor value chain, its advanced manufacturing capabilities and its ongoing and planned collaborations with India.
PM Modi posted on X that he visited the Training Room and Production Innovation Lab of the facility, and interacted with top officials of the company. He added, “the semiconductor sector is a key area for India-Japan cooperation.”
PM Ishiba and I visited the Tokyo Electron Factory. We went to the Training Room, Production Innovation Lab and interacted with top officials of the company. The semiconductor sector is a key area for India-Japan cooperation.
In the last few years, India has made many strides in… pic.twitter.com/6Fmv0s7gUo
— Narendra Modi (@narendramodi) August 30, 2025
Tokyo Electron Miyagi is a crucial partner in India’s ongoing efforts to become semiconductor manufacturing hub. Because, the company makes the tools needed to make semiconductor chips, and has already signed an MoU with Tata Electronics to supply cutting-edge tools for the two upcoming plants of Tata in India.
Tokyo Electron (TEL) is one of the world’s top suppliers of semiconductor manufacturing equipment, the “capital goods” that actually make chips. The company makes tools for each step involved in semiconductor making, like etching, deposition, cleaning, coating/developing, etc. A close tie with the company is crucial for access to tools, process know-how, and training of operators.
The factory visit gave the leaders a practical understanding of the opportunities that exist between the two countries to forge collaboration in the field of semiconductor supply chain, fabrication and testing.
For India’s strategy, equipment access is pivotal for three reasons. First, India’s flagship wafer-fab and semiconductor packaging projects hinge on timely tool procurement and installation. Second, India must train thousands of tool operators and process engineers to run and maintain complex tools at high yield. Third, long-term resilience depends on embedding global suppliers like TEL into India’s ecosystem, through service hubs, training pipelines, and, over time, even localised capabilities.
The government of India has already approved ten semiconductor units across states in the country, with additional projects cleared in August 2025. These plants will need to procure high end tools used in semiconductor manufacturing, which are made by only few companies in the world. A visible, high-level engagement with TEL is important in this regard.
Tokyo Electron supplies the full suite of tools needed in a semiconductor fab, each serving a distinct purpose in chipmaking. Its coater/developer systems apply and process photoresist layers for lithography, while Etch tools use plasma to carve precise patterns into silicon and other films. Deposition systems such as CVD, PVD and ALD lay down insulating, conducting and barrier layers essential for device structures.
Cleaning equipment made by TEL ensures wafers remain free of particles and residues between steps, and Thermal Processing systems like furnaces and rapid thermal anneal units activate dopants and improve film quality. Complementing these, Metrology and Inspection tools measure critical dimensions, film thickness, and detect defects, enabling process control and yield improvement. Together, these tools form the backbone of any modern fab, making TEL’s engagement crucial for semiconductor manufacturing in India.
Tokyo Electron Miyagi has already signed a MoU with Tata Electronics to supply semiconductor making tools to be used in Tata’s upcoming two semiconductor units in India. The two companies announced a strategic partnership in September 2024. This covers equipment planning and procurement, services, and the ecosystem pieces needed to install toolsets on schedule.
Statements issued by both the companies said that the two companies will collaborate to accelerate semiconductor equipment infrastructure for India’s first Fab being built by Tata Electronics in Dholera, Gujarat, and for its assembly and test facility in Jagiroad, Assam.
Apart from supplying tools, the deal also involves training Tata Electronics’ workforce on TEL equipment, and supporting ongoing improvement and R&D initiatives.
Tata Electronics in investing ₹1,18,000 lakh crore in its two units, far more than the combined investment in the other upcoming units. Therefore, TEL’s involvement in India’s semiconductor manufacturing is significant. The company has pledged to provide comprehensive support to Tata Electronics to ensure the success of India’s first commercial wafer fab.
CEO Toshiki Kawai said that Robotics will play a growing role, and local staff will be provided with in-person and remote support from Japan.
Moreover, Tokyo Electron plans to expand its presence in India, with recruitment and training of local engineers in India to support the country’s growing semiconductor industry. The company aims to establish a team of engineers by 2026 to provide technical services to Tata Electronics.
Not many companies make semiconductors, and much smaller number of companies in the world make the tools used in making semiconductors. Therefore, close ties with companies like TEL is very important for the industry. Therefore, PM Modi’s Sendai visit was not just a plant photo-op, it was an important part of India’s Semiconductor Mission.
