India and Japan strengthen semiconductor ties for technological advancement.
The Union Cabinet, under the leadership of Prime Minister Shri Narendra Modi, has been briefed on the Memorandum of Cooperation (MoC) signed in July 2023. This agreement was established between the Ministry of Electronics and Information Technology of India and Japan’s Ministry of Economy, Trade and Industry, focusing on the Japan-India Semiconductor Supply Chain Partnership.
The primary objective of this MoC is to fortify the collaboration between India and Japan in bolstering the semiconductor supply chain. Both nations acknowledge the pivotal role semiconductors play in advancing various industries and digital technologies.
This partnership will officially commence from the date of signing and will remain in effect for a five-year period. It encompasses Government-to-Government (G2G) and Business-to-Business (B2B) cooperation to explore opportunities for fortifying the semiconductor supply chain and capitalizing on each other’s strengths.
Furthermore, the MoC is anticipated to lead to increased cooperation, ultimately creating employment opportunities within the IT sector.
The Ministry of Electronics and Information Technology (MeitY) has been actively engaged in creating an enabling environment for electronics manufacturing. The Programme for Development of Semiconductor and Display Manufacturing Ecosystem in India was introduced to establish a robust and sustainable semiconductor and display ecosystem in the country. This initiative extends fiscal support for the establishment of various semiconductor facilities.
Additionally, the India Semiconductor Mission (ISM) has been set up under Digital India Corporation to drive India’s strategies for the development of the semiconductor and display manufacturing ecosystem.
MeitY’s mandate also includes promoting international cooperation in emerging areas of Information Technology. This involves entering into MoUs, MoCs, and agreements with counterpart organizations of various countries to facilitate bilateral cooperation and information exchange, thereby enhancing supply chain resilience.
The “India-Japan Digital Partnership” (IJDP) was launched in October 2018 during PM Modi’s visit to Japan. It focuses on digital ICT technologies and aims to further existing areas of cooperation as well as introduce new initiatives within the scope of science, technology, and ICT.
Building on the foundation of the IJDP and India-Japan Industrial Competitiveness Partnership (IJICP), this MoC on Japan-India Semiconductor Supply Chain Partnership is poised to deepen and broaden cooperation in the electronics ecosystem. Given the pivotal role of semiconductors in advancing industries and digital technologies, this MoC is expected to significantly enhance the resilience of the semiconductor supply chain.
