According to recent reports, Fujifilm Electronic Materials is considering expanding its manufacturing facilities to India. They specialize in developing and managing chemical formulations critical to semiconductor technology. With its global headquarters in Yokohama, Japan, the company currently operates 11 regional offices worldwide. If negotiations and talks go well, India might well be their 12th country of production. A move like this would be highly strategic and beneficial to Fujifilm, as well as providing a massive shot in the arm for the Indian manufacturing industry
The lead image used in this article is courtesy of FUJIFILM Business Innovation Corp.
As the name indicates, Fujifilm Electronic Materials is part of Fujifilm Holdings Corporation, the company that makes the cameras we all like to see, hold, and use. This department, however, doesn’t manufacture cameras. Its innovative formulations support essential products like smartphones, computers, medical devices, cars, refrigerators, and other goods that play a vital role in everyday life. In short, their work helps take “semiconductor technology to the next node and beyond.” Their interest in India isn’t very recent, though. Back in March of this year, the Managing Director of Fujifilm India, Koji Wada, mentioned that this could happen in the next few years.
“We are always discussing Make in India. Not only the Indian government, but even the Japanese government is very supportive of this. This is also my dream and maybe in the next 2-3 years we can think of something.”
This aligns quite well with the “Make In India” initiative, which the Indian government has spearheaded for the better part of the last decade. The program aims to boost the nation’s manufacturing capabilities, attract foreign investment, and create millions of jobs, all while offering international companies a competitive advantage by setting up shop in India. The initiative offers massive incentives to electronics manufacturers, making India an attractive alternative to traditional manufacturing hubs like China. Programs like the Production Linked Incentive (PLI) scheme directly reward manufacturers based on the growth of locally made products.
Fujifilm Participates in SEMICON India 2024
To get a better idea of what such a decision would entail in the long run, Fujifilm participated in the recently concluded SEMICON India event. This was an exhibition of semiconductor manufacturing equipment and materials held in the capital, New Delhi. According to a report by Fujifilm, the semiconductor-related market in India is expected to grow to 64 billion dollars by 2026. This is three times the size of what it was in 2019 and is due to the government’s focus on fostering the local semiconductor industry.
Speaking about Fujifilm’s participation in the event, Mr. Tetsuya Iwasaki, Director, Corporate Vice President, and General Manager of the Electronic Materials Business Division of Fujifilm Corporation, had this to say:
“India is a very strategic country for Fujifilm Electronic Materials business, the recent investments of some very big brands to manufacture Semiconductors in India is very encouraging. As a global company with expertise in electronic materials, we would like to be part of this historic growth story of India.”
Benefits of Manufacturing In India
Expanding your global presence is always a good thing for large international corporations such as Fujifilm. But many of you might wonder what Fujifilm could gain from establishing a manufacturing presence in a country like India. Let’s be clear on one thing – the India of today isn’t the India that it was at the turn of the millennium. As of this year, India is the 5th largest economy in the world, standing below the US, China, Germany, and Japan, all of whom have been traditionally considered economic powerhouses. Manufacturers can ship goods efficiently to Europe, the Middle East, and Africa, reducing the logistics costs associated with exporting from more remote locations. Let’s look at three key points to understand this move from Fujifilm:
- Easy Setup and Government Support: The Make In India initiative promotes Foreign Direct Investment (FDI) by simplifying regulations and improving business transparency. This makes it easier for international companies to establish production facilities in India. The Indian government has significantly relaxed FDI regulations across various sectors, including, but not limited to, electronics, automotive, defense, and consumer goods. In many sectors, 100% FDI is now allowed through the automatic route. This means foreign companies can invest and establish manufacturing units in India without needing prior government approval.
- Enhancing Manufacturing Infrastructure: The Indian government has focused on upgrading India’s industrial infrastructure, including developing industrial corridors, smart cities, and logistics hubs for efficient production and swift transportation of goods. Industrial corridors like the ones between Delhi and Mumbai, as well as Chennai and Bangalore, were developed to create world-class manufacturing hubs. These include the development of smart cities, industrial parks, and high-speed freight transport. Various special economic zones around the country also offer tax incentives, duty exemptions, and state-of-the-art infrastructure.
- Reducing Supply Chain Dependencies: Countries reliant on electronics manufacturing from single regions, like China, can diversify their supply chains by setting up production in India, reducing geopolitical risks. China is clearly the biggest manufacturing hub for almost all electronic giants today, and expanding production facilities to other countries would benefit companies like Fujifilm. Earlier this year, the US government issued a statement about unfair market practices, technology transfers, and intellectual property theft in China. These risks could be mitigated to some extent by having a facility in India.
What Next
We know Fujifilm is a company that makes some of the most stylish and functional cameras for hobbyists and professionals today. But Fujifilm is a much larger tech corporation, making more than just cameras. They offer a comprehensive product lineup that spans nearly the entire spectrum of semiconductor manufacturing processes, from cutting-edge technologies to legacy systems. While the news for now is limited purely to expanding semiconductor-related manufacturing to India, who’s to say this won’t be extended to their camera division. Most Japanese camera brands nowadays manufacture cameras outside of their country. China and Taiwan are the leading offshore sites for such production.
With highly competitive labor costs, India is already proving to be a cost-effective option for global brands, including Apple, Samsung, and Foxconn, which have ramped up their production facilities in the country. It might not be long before your favorite camera brand sports a “Made In India” sticker, which many Indians would wear as a badge of pride.