In Short:
Canon, known for cameras, is exploring collaborations for semiconductor equipment in chip fabrication space, targeting Indian and global players expanding electronics manufacturing. It also launched Canon Medical Systems India for CT scanners and medical equipment. The printing giant expects India to become its top market by 2035. It aims to grow printing business share from 22-25% to 35%. Canon is optimistic about security system growth in India.
Canon Explores Semiconductor Market in India
Canon is currently in discussions with Indian and global semiconductor companies regarding its semiconductor lithography equipment, a key component in chip fabrication. This move will position Canon to compete with industry leaders like ASML in this space.
Expansion into India
Manabu Yamazaki, President and CEO of Canon Inc, stated, “We are in the early stages of discussions with companies looking to invest in semiconductor fabrication units in India, as well as those expanding electronics manufacturing for products like phones and laptops.”
While specific partners were not disclosed, companies like Tata Group, Powerchip Semiconductor Manufacturing Corp, and CG Power are known to be working towards establishing semiconductor chip fabrication units in India.
Canon also recently launched Canon Medical Systems India in Gurugram to address the increasing demand for medical machinery in the country, including CT scanners, MRI equipment, and ultrasound systems.
Market Growth and Vision
Canon views India as one of its top three markets in Asia and aims to become the number one market by 2035. The company’s printing business in India is estimated at Rs 10,000 crore, with a 25% market share that is expected to grow by 35% in the next three years.
Yamazaki commented on the government’s focus on local value addition in IT hardware, stating that Canon is prepared to respond to such initiatives when they come into effect.
Diversification and Future Prospects
Canon’s sales primarily come from enterprise segments like weddings, video-blogging, content creation, and fashion. The company is also optimistic about the growth of security systems, surveillance cameras, and video analytics software amidst government initiatives to develop 100 smart cities in India.
