India is rapidly emerging as a potential alternative to China in the semiconductor supply chain, with significant investments exceeding $15 billion approved in 2024 for the establishment of three semiconductor plants. This move is part of India's broader strategy to enhance its semiconductor capabilities and reduce dependency on foreign suppliers. Currently, India boasts 19% of the world's chip designers, indicating a strong foundation for growth in this sector. [7a0b8a6a]
Canon India is also playing a pivotal role in this landscape, with CEO Toshiaki Nomura highlighting the opportunities in semiconductor lithography equipment essential for chip fabrication. Canon is actively negotiating with various chip manufacturers setting up facilities in India, aiming for double-digit growth in 2024. In fiscal 2023, Canon reported revenues of Rs 3,148.13 crore and a net profit of Rs 140.35 crore, showcasing its robust performance amidst the semiconductor boom. [ee9558a4]
Partnerships with major players like Nvidia, AMD, and Micron are expanding, which could further bolster India's position in the global semiconductor market. However, challenges remain, including infrastructure gaps, technological catch-up, and deficiencies in the existing ecosystem. Collaboration with Taiwan is seen as a potential avenue to address these challenges and enhance India's semiconductor capabilities. [7a0b8a6a]
In addition to its semiconductor ambitions, Canon is expanding its presence in healthcare and studio operations, particularly in tier II and III cities across India. This diversification strategy reflects Canon's vision to tap into emerging markets within the country. [ee9558a4]
As the semiconductor industry evolves amidst geopolitical tensions, companies are increasingly looking to India as a viable alternative for manufacturing and fabrication. This shift is driven by the need for self-sufficiency in semiconductor production, particularly in light of the US's push for independence from reliance on foreign chip supplies. [980aadae][ff2bc4eb]