India to partner Japan in improving semiconductor supply chain

The Memorandum of Cooperation (MoC), which was signed in July 2023, has been acknowledged by the Union Cabinet in an effort to strengthen cooperation between Japan and India in the field of semiconductor technology.

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

This MoC recognizes the critical role semiconductors play in the development of industries and digital technologies, and its main goal is to strengthen the partnership between the two countries.

This Memorandum of Cooperation will become effective from the date of its signature and will remain in force for a duration of five years.

The collaboration under this MoC spans both Government-to-Government (G2G) and Business-to-Business (B2B) initiatives, focusing on creating opportunities to advance a resilient semiconductor supply chain while leveraging the respective strengths of India and Japan, read the press release.

In addition to fostering cooperation between the two countries, the MoC is expected to bring about improvements in collaboration that could, in turn, lead to employment opportunities within the IT sector.

The Ministry of Electronics and Information Technology (MeitY) has been actively working to establish an enabling environment for electronics manufacturing, read the press release.

The “Programme for Development of Semiconductor and Display Manufacturing Ecosystem in India” was introduced to ensure the robust and sustainable development of semiconductor and display ecosystems within the country.

This program extends fiscal support for the establishment of Semiconductor Fabs, Display Fabs, Fabs for Compound Semiconductors, Silicon Photonics, Sensors, Discrete Semiconductors, Semiconductor Assembly, Testing, Marking, and Packaging (ATMP), as well as Outsourced Semiconductor Assembly and Test (OSAT) facilities, read the press release.

The India-Japan Digital Partnership (IJDP) was launched in October 2018 during Prime Minister Modi’s visit to Japan, furthering existing areas of cooperation and introducing new initiatives within the scope of cooperation in Science and Technology/Information and Communication Technology (S&T/ICT), with a particular 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, read the release.

Recognizing the fundamental role of semiconductors in the advancement of industries and digital technologies, this MoC will reinforce the resilience of the semiconductor supply chain.

(with inputs from agencies)