Financial Association News September 27th (Editor Ma Lan) The Indian government is vigorously promoting its semiconductor manufacturing ambitions, intensifying efforts to attract international electronics companies and chip manufacturers to establish factories in India.

As an important part of the supply chain, Tokyo Electron Ltd. Unsponsored ADR, which provides equipment to Taiwan Semiconductor, Samsung Electronics, SK Hynix, and Intel, announced plans to recruit and train local engineers in India and provide technical services to the Indian company Tata Electronics.

Toshiki Kawai, CEO of Tokyo Electron Ltd. Unsponsored ADR, stated that Indian employees will receive on-site and remote support from Japan. However, he did not disclose the scale of recruitment in India.

Tokyo Electron Ltd. Unsponsored ADR previously planned to recruit 10,000 new employees globally within the next five years. It also predicts that by 2030, driven by ai, autonomous driving cars, and decarbonization transformation, the overall demand for chips will double.

Challenged Ambitions

Tokyo Electron Ltd. Unsponsored ADR had previously stated that it will help Tata Electronics train employees to use chip manufacturing equipment and support its research and development.

The company is a manufacturer of silicon wafer development, patterning, and cleaning equipment, with its main competitor being the American company Applied Materials. Tokyo Electron Ltd. Unsponsored ADR is now seeking certification for low-temperature etching mass production technology, capable of high-speed processing of stacked flash memory.

In addition to Tokyo Electron Ltd. unsponsored ADR, American memory manufacturer Micron Technology plans to invest $2.75 billion to build an assembly plant in India. Israeli Tower Semiconductor is also seeking to collaborate with Indian billionaire Adani to build a $10 billion manufacturing plant in western India.

This fully reflects the attractiveness of Modi government's $15 billion semiconductor support plan, as well as the strategic focus on continuing overseas layout in the global semiconductor industry.

However, aside from the good news, India is currently facing a huge problem - labor disputes. Pioneer South Korean Samsung Electronics is experiencing a large-scale strike at its factory in India, where workers have been blocking the factory for three consecutive weeks, vowing to get higher wages and better benefits.

Samsung Electronics stated that to some extent, the demand for a wage increase is understandable, but requesting a doubling of wages in a short period of time is clearly unacceptable. According to local media, the Indian government has requested state government intervention to mediate, but so far there have been no signs of reconciliation.

This event is also seen by analysts as a major test for India. If the Indian workers at the Samsung Electronics factory win and successfully form a union, it will be a ready-made example for other manufacturing factories in the region, sparking a larger wave of union formation. This will be a significant deterrent factor for overseas investors.