Japan Joins Hands with India in Semiconductor Revolution

By Ritwik Ghosh,Kolkata India


In a significant move, Japan, the second partner in the Quad alliance after the United States, has inked a groundbreaking agreement with India. This accord is set to pave the way for collaborative efforts to bolster the semiconductor ecosystem and ensure the robustness of the global supply chain.

A Milestone Agreement The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has granted approval for a Memorandum of Cooperation (MoC) between India and Japan. This MoC establishes a Semiconductor Supply Chain Partnership, marking a critical development in the realm of technology and trade. The official statement, released on a Wednesday, confirms the signing of the MoC between the two nations back in July 2023.

A Closer Look at the MoC: The MoC, signed in July 2023, brings together the Ministry of Electronics and Information Technology of the Republic of India and the Ministry of Economy, Trade, and Industry of Japan. This partnership is aimed at fortifying the semiconductor supply chain, recognizing the pivotal role of semiconductors in advancing various industries and digital technologies.

A Five-Year Commitment: This landmark agreement is set to take effect from the date of its signing and will remain in force for a substantial period of five years. This extended commitment underscores the dedication of both nations to ensure the continuity and reliability of semiconductor supply chains.

Strengthening Bilateral Cooperation: The official statement underscores the importance of both Government-to-Government (G2G) and Business-to-Business (B2B) Bilateral Cooperation in exploring opportunities to enhance resilient semiconductor supply chains. It emphasizes leveraging the strengths of each nation to foster innovation and sustainability in this crucial sector.

The India-Japan Digital Partnership: In recognition of the synergies and complementarities between India and Japan, the “India-Japan Digital Partnership” (IJDP) was inaugurated during the Indian Prime Minister’s visit to Japan in October 2018. This initiative was created to boost cooperation and introduce new innovations in the realms of science, technology, and information and communications technologies.

Building on Existing Collaborations: Building upon the existing India-Japan Digital Partnership (IJDP) and the India-Japan Industrial Competitiveness Partnership (IJICP), this newly signed MoC on the Japan-India Semiconductor Supply Chain Partnership will further expand and deepen cooperation within the electronics ecosystem.

Japan’s Prominence in Semiconductors: Japan stands out as one of the world’s top five countries with a thriving semiconductor ecosystem. With approximately 100 semiconductor manufacturing plants, it plays a significant role in the global technology landscape.

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The collaboration between Japan and India in the field of semiconductors is a remarkable step toward a more robust and innovative global technology landscape. It not only strengthens the bond between these two nations but also ensures the resilience and continuous growth of semiconductor supply chains, which are pivotal to the advancement of various industries and digital technologies. This agreement is a testament to the power of international cooperation in shaping the future of technology.

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