In an interview, Takuma Otaki of the Japan External Trade Research Organization (Jetro) said a business delegation, including semiconductor firms, is planning to visit India after March to scout for potential investments.

Otaki, who serves as director at Jetro’s Delhi office, said Japanese semiconductor firms are interested in jointly working with Indian companies in developing and designing chips. They will also explore setting up fabrication facilities here, he added.

Otaki cited the instance of the collaboration between Renesas, a Japanese semiconductor firm, and Indian automaker Tata Motors Ltd. The partnership between Renesas, an automotive semiconductor maker, and Tata Motors was announced in June.

At the time, Tata Sons chairman N. Chandrasekaran said in a statement that the partnership would focus on “areas like automotive electronics and present and future telecom networks”.

India is working to become a key player in the global semiconductor industry to attract high-value manufacturing, cut dependence on chip imports and benefit from Western companies looking to explore manufacturing opportunities beyond China because of geopolitical tensions.

According to Otaki, the Japanese delegation will also include representatives from healthcare and green technology firms.

Mint earlier reported that Japan has been considering a shift in its investment strategy. While its companies have traditionally focused on automobiles and other manufacturing sectors, there has been a growing interest in India’s healthcare sector and emerging green technology market. Mint also reported earlier that Yamanashi Hydrogen, a Japanese maker of hydrogen electrolyzers, is exploring the possibility of a manufacturing base in India. Such electrolyzers, which are key to producing green hydrogen, can support India’s ambitious plans to develop itself as a hub for green hydrogen.

Otaki said Jetro is also discussing possibilities in the Indian market with other Japanese electrolyzer companies.

The delegation will also comprise large Japanese companies such as Toshiba and small and medium enterprises. Promoting participation from Japanese SMEs in the Indian market has been a particular focus of Jetro’s activity in India.

Smaller firms in the East Asian nation have so far found it difficult to crack the Indian market. This has hindered a significant expansion in the footprint of Japanese business in India, with the number of active Japanese companies in the country staying unchanged in the last five years.

According to trade promotion body Invest India, 1,455 Japanese companies operate in India, with the figure dipping during the pandemic.