India and AI demand anchor Asia chip moves

Japan’s chip equipment and materials suppliers are moving deeper into India as New Delhi builds up its semiconductor industry. Screen plans to expand into India, while Fujifilm and Tokyo Electron see opportunities from the country’s chip ambitions. Sojitz plans a chip materials transport hub for Tata’s fab, and Applied Materials said it will invest $5bn in India while doubling its R&D workforce there.

AI demand remains central across the sector. Panasonic Energy expects $5.5bn in fiscal year sales of batteries for data centers, TDK is increasing production of components for AI servers, and Fujitsu plans to export AI chips based on supercomputer technology to the US and Asia. Huawei introduced 11 AI-related chips and said demand for Ascend chips exceeds supply.

Regional competition is widening beyond manufacturing. Japan and the US are discussing a chip factory that could reach $19bn, with GlobalFoundries set to operate the new plant. Samsung has opened a Japan AI chip R&D hub for advanced packaging collaboration, while TSMC, Intel and Samsung are all betting on ASML’s latest chip tool for the AI race.