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Cabinet Approves India-Japan Semiconductor Supply Chain Partnership

Cabinet approves Memorandum of Cooperation between India and Japan on Japan-India Semiconductor Supply Chain Partnership

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New Delhi, October 25, 2023: In a significant move aimed at bolstering the semiconductor supply chain and promoting digital technology, the Union Cabinet chaired by Prime Minister Shri Narendra Modi has given its approval for a Memorandum of Cooperation (MoC) between India and Japan. The MoC, signed in July 2023, paves the way for the Japan-India Semiconductor Supply Chain Partnership.

Strengthening the Semiconductor Supply Chain

The primary objective of this MoC is to enhance cooperation between India and Japan in the semiconductor industry. Both countries recognize the vital role semiconductors play in advancing industries and digital technologies. The partnership seeks to bolster the semiconductor supply chain, ensuring a more robust and resilient ecosystem.

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Immediate Implementation

The MoC will come into effect from the date of its signing and will remain in force for a five-year period. This means that the collaborative efforts between the two nations will commence promptly, with a dedicated focus on achieving the goals outlined in the agreement.

Government and Business Collaboration

The partnership takes a comprehensive approach, involving both Government-to-Government (G2G) and Business-to-Business (B2B) cooperation. This approach aims to leverage the strengths and capabilities of both countries to advance the semiconductor supply chain and foster mutual growth.

Also read | Kaynes Technology to Invest Rs 2800 Crores in Telangana’s Semiconductor Assembly & Test Facility

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Boosting Employment Opportunities

One of the significant outcomes of this collaboration will be the creation of employment opportunities in the information technology (IT) sector. The improved collaboration between India and Japan will contribute to job growth, especially in the field of IT.

Background and Context

The Ministry of Electronics and Information Technology (MeitY) in India has been actively working to create a conducive environment for electronics manufacturing. The “Programme for Development of Semiconductor and Display Manufacturing Ecosystem in India” was launched to support the development of a robust semiconductor and display ecosystem within the country.

This program encompasses fiscal support for the establishment of various semiconductor facilities, including Semiconductor Fabs, Display Fabs, Compound Semiconductors, Silicon Photonics, Sensors, Discrete Semiconductors, and Semiconductor Assembly, Testing, Marking, and Packaging (ATMP) facilities. Additionally, the India Semiconductor Mission (ISM) has been established under the Digital India Corporation (DIC) to drive India’s strategies for semiconductor and display manufacturing.

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MeitY has also been actively promoting international cooperation in emerging IT areas through bilateral and regional frameworks. The MoU with Japan is yet another step towards creating a resilient supply chain, ensuring that India becomes a trusted partner in the semiconductor industry.

Also read | Micron Technology breaks ground for its Sanand Semiconductor Test & Assembly plant

Strengthening Existing Ties

The “India-Japan Digital Partnership” (IJDP) was initiated during Prime Minister Modi’s visit to Japan in October 2018. It was established to strengthen cooperation in science, technology, and information and communication technology (ICT), with a focus on “Digital ICT Technologies.”

Building upon the ongoing IJDP and the India-Japan Industrial Competitiveness Partnership (IJICP), this MoC on the Japan-India Semiconductor Supply Chain Partnership aims to deepen and broaden cooperation within the electronics ecosystem. It underscores the significance of semiconductors in advancing industries and digital technologies and emphasizes the need for a resilient semiconductor supply chain.

This partnership is expected to bring substantial benefits to both India and Japan, enhancing their positions in the global semiconductor industry and promoting technological growth in these nations.

Also read | Kaynes Technology to Invest ₹3,750 Crores in Mysuru’s Semiconductor Assembly and Test Facility

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