India and Japan will partner up to boost semiconductor supply chain

The Union Cabinet has welcomed the Memorandum of Cooperation (MoC), which was signed in July 2023, as an attempt to strengthen collaboration between India and Japan in the area of semiconductor technology.

After the US, Japan is now the second Quad partner to sign an agreement with India for the cooperative development of the semiconductor ecosystem and the preservation of the robustness of its global supply chain.

This Memorandum of Cooperation (MoC), with an emphasis on the Japan-India Semiconductor Supply Chain Partnership, is between the Japanese Ministry of Economy, Trade, and Industry and the Indian Ministry of Electronics and Information Technology, according to the Cabinet’s news release.

The primary goal

The primary objective of this MoC is to solidify the bilateral relationship between the two nations while acknowledging the vital role semiconductors play in the growth of industries and digital technologies. The date of signature will mark the start of this Memorandum of Cooperation’s effective period, which will last for a period of five years.  The primary goal of these initiatives is to develop a robust semiconductor supply chain by utilising the unique advantages of Japan and India. The MoC is anticipated to strengthen collaboration in addition to boosting bilateral ties, which may ultimately result in job possibilities in the IT industry.

“Both G2G and B2B Bilateral Cooperation on opportunities to advance resilient semiconductor supply chains and leverage complementary strengths,” said the press release. According to the press release, the Ministry of Electronics and Information Technology (MeitY) has been rapidly attempting to create a supportive environment for the production of electronics.

In order to guarantee the strong and long-lasting growth of the semiconductor and display manufacturing ecosystems in India, the “Programme for Development of Semiconductor and Display Manufacturing Ecosystem in India” was implemented.

As the press release states, this programme provides financial support for the establishment of semiconductor fabrication plants (Fabs), display fabrication plants (Fabs), fabs for compound semiconductors, silicon photonics, sensors, discrete semiconductors, ATMP (Assembly, Testing, Marking, and Packaging), and OSAT (Outsourced Semiconductor Assembly and Test) facilities.

The India-Japan Digital Partnership

During Prime Minister Modi’s visit to Japan in October 2018, the India-Japan Digital Partnership (IJDP) was introduced. Its goals are to expand on current areas of cooperation and introduce new initiatives in the field of science, technology, and information and communication technology (S&T/ICT), with a focus on “Digital ICT Technologies.”

“Building upon the ongoing IJDP and India-Japan Industrial Competitiveness Partnership (IJICP), this MoC on Japan-India Semiconductor Supply Chain Partnership aims to extend the scope and depth of cooperation in the electronics ecosystem,” the press statement stated.

Given that semiconductors are essential to the development of digital technologies and industries, this Memorandum of Cooperation will strengthen the robustness of the semiconductor supply chain.