India, Japan Strengthen Cooperation on Semiconductor Supply Chain

The Union Cabinet has approved a memorandum of cooperation between India and Japan on a Semiconductor Supply Chain Partnership, an official statement said on Wednesday. The memorandum of cooperation between the two countries was signed in July.

Strengthening Cooperation

The Union Cabinet chaired by Prime Minister Shri Narendra Modi was apprised of a Memorandum of Cooperation (MoC) signed in July 2023, between the Ministry of Electronics and Information Technology of the Republic of India and the Ministry of Economy, Trade and Industry of Japan on Japan-India Semiconductor Supply Chain Partnership, the statement said. Japan has become the second Quad partner after the US to sign an agreement with India for the joint development of the semiconductor ecosystem and maintain the resilience of its global supply chain.

Objectives of the MoU

The MoC intends to strengthen cooperation between India and Japan towards the enhancement of the semiconductor supply chain, recognizing the importance of semiconductors for the advancement of industries and digital technologies, the statement said. The MoC will come into effect from the date of signature of the parties and remain in force for a period of five years.

Collaboration Opportunities

Both G2G and B2B Bilateral Cooperation on opportunities to advance resilient semiconductor supply chains and leverage complementary strengths, the statement said. In view of synergies and complementarities between the two nations, the India-Japan Digital Partnership (IJDP) was launched during the visit of the prime minister to Japan in October 2018 to boost cooperation and new initiatives within the scope of cooperation in science and technology and information and communications technologies.

Broadening and Deepening Cooperation

Based on the ongoing IJDP and India-Japan Industrial Competitiveness Partnership (IJICP), this MoC on Japan-India Semiconductor Supply Chain Partnership would further broaden and deepen the cooperation in the field of electronics ecosystem, the statement said. Japan is among the top five countries to have a semiconductor ecosystem, with around 100 semiconductor manufacturing plants.

The MoU between India and Japan on Semiconductor Supply Chain Partnership is a significant step towards strengthening cooperation between the two countries in the field of electronics and semiconductors. With Japan's expertise and India's growing electronics market, this partnership holds immense potential for advancing the semiconductor supply chain and fostering innovation in the digital technologies sector.