Japanese precious metals firm TANAKA sees more India orders but not rushing into local manufacturing

Fabs and packaging plants have, so far, dominated the headlines for India’s semiconductor story. As more of these facilities take shape, the specialised materials that go into making and testing semiconductors are coming into focus.

Japanese precious-metals firm TANAKA believes India’s semiconductor industry has begun picking up over the past three to five years and expects the growth to accelerate.

“We expect much more growth in the Indian market and the semiconductor industry,” Yasutaka Ihara, director and corporate officer, TANAKA Precious Metal Technologies, told ET AI at the SEMICON India 2026.


The Tokyo-headquartered company claims to have already received orders from Indian customers and is now tracking how quickly that business grows before deciding whether to manufacture semiconductor materials locally. The company did not disclose its customers in India, but said it is already supplying to several large semiconductor players.

“If the Indian market grows sooner, we [will] make a decision to set up here also to support the process,” Ihara said.

The company operates factories in Japan and the US, but its decision to set up manufacturing in India will depend on customer activity and the size of the opportunity, he added.

More than just chips

A semiconductor factory needs more than silicon. Firms like TANAKA supply bonding wires, which connect semiconductor chips to the package's leads, as well as silver-based materials used to attach chips to substrates and lead frames. It also supplies precious-metal plating technologies, sputtering targets, and materials used in semiconductor testing.

While consumers might not see these components in a finished chip, they become important as manufacturers move towards advanced packaging and power semiconductors, where thermal management, electrical performance, reliability and cost matter.

India is eyeing to build this part of the ecosystem, too. Union IT and electronics minister Ashwini Vaishnaw said the government has received investment interest worth $11-12 billion under Semicon 2.0 as companies explore projects in chip design, equipment manufacturing, fabrication and advanced packaging.

Vaishnaw had said the second phase of the programme is about building a fuller semiconductor ecosystem on the foundation laid under Semicon 1.0.

Not rushing into local manufacturing

India has five semiconductor units in commercial production, after the government on September 17 inaugurated production at CDIL Semiconductor's facility in Mohali and Suchi Semicon's unit in Palsana, Gujarat. The two joined Micron, Kaynes Semicon and CG Semi.

Within the semiconductor value chain, these operational units deal with packaging, assembly and testing. But, TANAKA is not rushing into local manufacturing yet. “At this moment we are watching our customers’ activities,” Ihara said.

The broader opportunity will depend on how quickly India'’ semiconductor plants ramp up, and whether the country can develop the infrastructure and supply chains needed to support them.

Ihara pointed to education and training, supply and delivery systems, and the ability to serve not just Indian customers but eventually global customers from India as key requirements.

“The supply for Indian customers is also important, as is the possibility of exporting from India to global customers,” he said.