ISM and Nippon Express Explore World-Class Semiconductor Logistics Hub in Gujarat

The semiconductor plans of India got a new impetus after the India Semiconductor Mission (ISM) had a strategic talk with Nippon Express Holdings with the aim of setting up sophisticated logistical infrastructural support to suit the specialised requirements of the industry.

High-Level Meeting in Tokyo

The ISM delegation held a meeting with the senior executives of Nippon Express Holdings in NX Group Building in Tokyo to discuss long-term partnership. The meetings were dedicated to the creation of a world-class semiconductor logistics centre in the Dholera Special Investment Region in Gujarat that is a fast-growing industrial zone within the Delhi-Mumbai Industrial Corridor.

Amitesh Kumar Sinha, the CEO of the ISM delegation, and Yasuhiro Okanishi, the Executive Officer of the NX Group, and Teruaki Nagoya, the India Representative of the NX Group, headed the respective delegations. The meeting indicated that both parties are willing to align infrastructure planning to the semiconductor manufacturing roadmap in India.

Target Dholera as a Strategic Node

Dholera has become a pillar in the strategy of semiconductor in India with its planned infrastructure and ecosystem industry. Important points of discussion consisted of:

• Construction of specialised logistic facilities and warehouses.
• Improvement in railway connectivity to facilitate movements of freight.
• Possible mechanisms of government assistance.
• The NX Group land utilisation plans.
• Possibility of expanding to other areas of India.

“The NX Group regards the Indian market as one of its most important bases for realizing its long-term vision of becoming ‘a logistics company with a strong presence in the global market.’” — Nippon Express Holdings press release.

Both parties have agreed to strengthen cooperation and collaborate in the development of logistics infrastructure which can sustain fabrication plants, raw material suppliers and final products manufacturers.

Improving the Strength of Semiconductor Supply Chains

Semiconductor logistics involves accuracy in handling semiconductor, temperature, security and time-sensitive delivery. The suggested hub will serve these requirements by incorporating multimodal connectivity through the introduction of innovative warehousing networks.

As rail, road and port infrastructure continue to advance in the Dholera area, this hub is likely to facilitate quicker delivery of products and materials and finished goods, decrease turnaround times and overall reliability of the supply chains.

Expanding India Presence at NX Group

Nippon Express has already established a good operational environment in India and there are over 100 business premises and 60 warehouses. India is a strategic growth market in the global expansion strategy and the company seeks to achieve the complex needs of semiconductor logistics by expanding its infrastructure and service base.

Increasing the Global Semiconductor Position of India

The proposed logistics hub will be seen as an addition to the overall endeavors of India to be a major player in the global semiconductor value chain. The partnership, through the integration of state-of-the-art infrastructure, global knowledge and government support, would be useful in establishing a resilient ecosystem to facilitate manufacturing, exports, and technological development.