New Delhi, Dec 6 (IANS): As the demand for semiconductors surges globally, the coming together of India and Japan -- and Taiwan -- can herald something "potentially important" that could reshape the geopolitical dynamics in the global chip industry, External Affairs Minister S. Jaishankar said on Friday

Addressing the India-Japan Forum in the national capital, EAM Jaishankar said New Delhi has embarked on an ambitious semiconductor journey, and both India and Japan are revitalising their semiconductor industries, with Taiwan as an integral part of this vital sector.

"Japan is today revitalising its semiconductor sector, and India, after a very long period of neglect, has announced a semiconductor mission. There are a lot of things happening," he told the gathering.

"It is interesting that both of us also happen to be working with Taiwan. I am seeing the beginnings of something potentially important here, and potentially really significant for both countries," EAM Jaishankar noted.

According to the minister, semiconductors are a vital field "which is going to be so important in a way that balances geopolitical level equations in this coming decade".

A recent report by Elara Securities recommended that India should strengthen its partnerships with Taiwan and Japan to bolster its semiconductor ecosystem.

Collaboration with both nations could provide the necessary expertise and investment, enhancing India's position globally, the report, which came out in September this year, said.

Taiwan holds a dominant position in semiconductor manufacturing globally with firms like TSMC, with its companies accounting for 78 per cent of the world's fab manufacturing and 53 per cent of the assembly, testing, marking, and packaging (ATMP) market.

Industry estimates place the Indian semiconductor market at approximately $38 billion in 2023, with projections indicating growth to $109 billion by 2030. The India Semiconductor Mission (ISM) aims to build a sustainable semiconductor and display ecosystem that will position India as a leader in electronics manufacturing and design.

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of multiple semiconductor units worth billions of dollars across the nation, including new facilities by Tata Electronics in Dholera, Gujarat, and CG Power in Sanand, Gujarat.

Tata Group and Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) are building a Rs 91,000 crore mega semiconductor fabrication facility in Gujarat's Dholera.