The president of Japanese auto supplier Denso announced on Thursday that the company plans to increase the size of its chips business from current levels by 2035 by investing roughly 500 billion yen ($3.3 billion) in semiconductors by 2030.

One of the biggest producers of car parts and components worldwide and a supplier to the Toyota group, Denso has been expanding its chip business in recent years, forming partnerships to help it obtain additional semiconductors.

The company said last year that it would invest in a chip plant that Taiwan Semiconductor Manufacturing Co and Sony were establishing in Japan. This move demonstrated how the auto industry’s shift to electric vehicles and the concept of “connected cars” had increased demand for semiconductors from automakers and their suppliers.

“We need to make sure we have steady material procurement if we want to increase output. As a result, we will establish strategic alliances with a number of businesses,” stated Denso President Shinnosuke Hayashi at the Japan Mobility Show, which got underway on Thursday.

According to him, the corporation would shift workers from established businesses to electrification and software, as well as hire new hires with a focus on these areas.

Additionally, a Memorandum of Cooperation (MoC) between Japan and India on creating a semiconductor supply chain partnership has been approved by the Union Cabinet. The MoC will centre on talent development, manufacturing, R&D, and design for the industry.

The IT Ministry and the Ministry of Economy, Trade, and Industry of Japan first signed the Memorandum of Understanding in July of this year.

According to a statement made by the Union Cabinet, the MoC recognizes the significance of semiconductors for the progress of industries and digital technologies and plans to deepen collaboration between India and Japan towards expansion of the semiconductor supply chain.

India is trying to make a name for itself in the semiconductor industry as a trustworthy supplier, particularly at a time when businesses are trying to move away from China, which has been the centre of the electronics industry for many years.

A $10 billion strategy to increase domestic chip manufacturing has been unveiled by New Delhi. The plan calls for the construction of an assembly and packaging plant in Gujarat by US memory manufacturer Micron Technology.