Exclusive: HORIBA Sees EV Chip Opportunity, Flags India's Semiconductor Supply Gaps

As India's electric vehicle market expands, Japanese precision equipment manufacturer HORIBA sees opportunities in the development of domestic semiconductor manufacturing capabilities, including silicon carbide (SiC) and other compound semiconductors used in automotive power electronics. The company expects manufacturing precision, raw-material availability and supply-chain development to become important considerations as India builds its semiconductor industry.

Speaking to Autocar Professional, Dr Rajeev Gautam, President, HORIBA India, said semiconductor manufacturing was evolving beyond conventional silicon-based chips towards different materials and applications. “In all manufacturing, there are two things which matter. One is precision and accuracy, be it any node of fabs or any node of chips. And that's where HORIBA equipment comes into play,” he said.

Silicon carbide is increasingly used in electric vehicle power electronics, particularly traction inverters and charging systems, where its electrical and thermal characteristics can support more efficient power conversion. HORIBA participates in the semiconductor manufacturing ecosystem through equipment used for gas-flow control, particle measurement and other precision processes rather than manufacturing semiconductor chips itself. Gautam said the evolution of semiconductor materials would require continued improvements in manufacturing accuracy and process control.

However, he identified raw-material availability as one of the biggest challenges facing India's efforts to establish compound semiconductor manufacturing capabilities. While semiconductor fabrication technology is available internationally, he said India would need to develop supporting industries involved in sourcing, processing and purifying materials.

“To my mind, the most difficult will be the raw material because we are still basically dependent on China,” Gautam said. “We need to develop the supply chain, raw materials, everything, the processes and purification of the raw material. That industry still has to develop.”

He maintained that access to technology was not necessarily the principal obstacle to establishing semiconductor manufacturing operations. “Technology, from a chip manufacturing point of view, as I see it, is not that difficult. Important is the supply chain and the raw material,” he said.

Skilled manpower would be another requirement as India develops manufacturing capabilities across silicon and compound semiconductor technologies. Referring to the government's semiconductor programme, Gautam said workforce development would be important for executing projects involving different materials and manufacturing processes.

“Whether you talk about silicon chips, whether you talk about silicon carbide or compound semiconductors, you need the talent also to execute it in India,” he said.

HORIBA expects India's semiconductor ecosystem to expand beyond fabrication facilities to include equipment, instrumentation, chemicals and other supporting industries. Gautam said the government's emphasis on developing the wider semiconductor value chain would create opportunities for companies supplying manufacturing technologies.

The company already undertakes certain manufacturing activities in Pune and is preparing to expand local production as domestic semiconductor demand develops. Gautam said HORIBA was technically prepared for additional manufacturing in India but would require sufficient volumes from semiconductor manufacturers before proceeding.

“As soon as we have the volumes here, definitely we will start manufacturing here,” he said.

Gautam expects HORIBA to expand its manufacturing activities in India over the next three to five years. He identified semiconductor equipment manufacturing as one of the earlier opportunities for localisation, citing India's existing engineering capabilities and the expected development of domestic semiconductor production.