Japanese logistics giant NX Group (formerly known as Nippon Express) aims to achieve revenues of $380 million over the next two years, seeking to strengthen its involvement in India's expanding semiconductor ecosystem, stated Katsuhito Kobayashi, head of the company for South Asia and Oceania.
The company, which has previously handled the transportation of sensitive automotive and pharmaceutical cargo in India, plans to open a specialized semiconductor logistics facility in Gujarat in 2027. This will allow it to expand its network to 113 points across India and 67 warehouses in 39 cities, added Kobayashi.
Kobayashi noted that semiconductor logistics is a complex and highly sensitive task. He emphasized that the work goes beyond simple chip delivery from factory to customer, including the movement of equipment, materials, and special chemicals.
NX Group intends to leverage its experience in semiconductor logistics from countries like Japan to build infrastructure from scratch in India. This infrastructure will serve both existing chip packaging divisions and any new manufacturing facilities.
Examples of services for semiconductor chips include transportation of production equipment, precision components, customs clearance, warehousing, factory delivery, in-plant logistics, installation, and distribution.
Furthermore, the company offers solutions ensuring transport with vibration and shock control, temperature and humidity management, and cleanroom delivery, which is critical for sensitive semiconductor equipment.
Instead of solely hiring new staff, the company will also train its current workforce in India, numbering 900 people, on semiconductors and related equipment. Kobayashi reported that some employees were already being sent to Japan for seminars and practical training.
Over the next two to three years, the company plans to establish a team of five managers in five major Indian cities who will assist in training other specialists in this highly specialized industry.
Although logistics costs in India are somewhat higher than in other regions, Kobayashi expressed hope that as more semiconductor enterprises begin commercial operations in India, the accompanying infrastructure will develop, contributing to lower overall freight rates.
NX Group, headquartered in Tokyo, is a major player in the global logistics market, with presences in transport, freight forwarding, warehousing, and supply chain management.
The company signed a Memorandum of Understanding (MoU) with the India Semiconductor Mission, which is part of the Ministry of Electronics and Information Technology (MeitY) and aims to develop logistics infrastructure for semiconductors and strengthen supply chains in India.