Chip race heats up: Piyush Goyal invites Japanese companies to build India’s semiconductor ecosystem

India rolls out $150 billion semiconductor opportunity as Goyal courts Japanese investors

August 27, 2026

Piyush Goyal pitches India as a global semiconductor hub, inviting Japanese companies to tap its rapidly expanding chip and technology market

India woos Japanese firms as semiconductor demand is projected to touch $150 billion

Commerce and Industry Minister Piyush Goyal has pitched India as a major global hub for semiconductors, artificial intelligence and advanced technology, inviting Japanese companies to deepen their investments and partnerships in the country.

Speaking during his visit to Japan, Goyal highlighted the growing demand for semiconductors in India, which he said could reach around $150 billion by 2032. He urged Japanese businesses to tap into this expanding market and participate in building India’s semiconductor ecosystem.

Goyal said India offers significant advantages for Japanese companies looking to expand their technology and manufacturing operations. He pointed to India’s large talent pool, growing domestic market, improving infrastructure and expanding ecosystem in areas such as semiconductors, AI and data centres.

India seeks deeper Japan partnership

The minister’s pitch comes as India and Japan look to strengthen cooperation in emerging technologies and manufacturing. Japan has set a target of investing 10 trillion yen in India over the next decade, with semiconductors, AI, critical minerals, batteries, energy and next-generation mobility among the key areas of focus. More than 1,400 Japanese companies are already operating in India.

Goyal has also urged Japanese companies to deepen localisation in India by setting up manufacturing capacities, research and development centres and Global Capability Centres. The government is separately working on measures to ease regulatory requirements for high-technology companies, including a proposed framework around exemptions from mandatory BIS certification for certain equipment and components needed to establish manufacturing facilities.

The minister has described India as a trusted destination for Japanese investment and highlighted opportunities extending beyond semiconductors to data centres, AI, renewable energy, advanced manufacturing and digital infrastructure. India has already attracted investment commitments of around $200 billion from major global hyperscalers for data-centre infrastructure.

Goyal’s Japan visit is part of India’s broader effort to strengthen economic ties with Tokyo and attract greater investment, technology and manufacturing capabilities into the country.

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