India and Japan inked the a Memorandum of Cooperation (MoC) signed in July 2023 between the Ministry of Electronics and Information Technology and the Ministry of Economy, Trade, and Industry of Japan. In the Union Cabinet meeting, Prime Minister Narendra Modi was apprised about this partnership.
This agreement is set to bolster the Japan-India Semiconductor Supply Chain Partnership.
The MoC on the ‘Japan-India Semiconductor Supply Chain Partnership’ further strengthens the mutual collaboration between Japanese and Indian companies. This collaboration builds upon the ‘India-Japan Digital Partnership’ (IJDP), launched during Prime Minister Modi’s visit to Japan in October 2018, with a focus on ‘Digital ICT Technologies.’
The primary aim of this MoC is to enhance cooperation between India and Japan in the realm of semiconductor supply chains. Recognizing the crucial role that semiconductors play in the advancement of industries and digital technologies, both nations are keen to collaborate and ensure a resilient semiconductor supply chain.
The Memorandum of Cooperation will come into effect from the date of its signing and is slated to remain in force for a period of five years. The cooperation extends to both Government-to-Government (G2G) and Business-to-Business (B2B) aspects, emphasizing opportunities to bolster the semiconductor supply chain and leverage the strengths of both countries.
This cooperation is expected to lead to improved collaboration and, in turn, generate employment opportunities in the field of information technology (IT).
MeitY in India has been actively working to create a conducive environment for electronics manufacturing. To this end, the ‘Programme for Development of Semiconductor and Display Manufacturing Ecosystem in India’ was launched, with the aim of fostering a robust and sustainable semiconductor and display ecosystem within the country.
The program seeks to provide fiscal support for the establishment of Semiconductor Fabs, sensors, discrete semiconductors, semiconductor assembly and Packaging facilities.
‘India Semiconductor Mission (ISM)’ has been established under the ‘Digital India Corporation (DIC)’ to steer India’s strategies for the development of the semiconductor and display manufacturing ecosystem.
MeitY is also mandated to promote international cooperation in emerging and frontier areas of Information Technology through bilateral and regional frameworks. With this objective in mind, MeitY has entered into MoUs, MoCs and agreements with counterpart organizations and agencies in various countries to promote bilateral cooperation and exchange of information, thus ensuring supply chain resilience to establish India as a trusted partner.
By recognizing the critical role of semiconductors in advancing industries and digital technologies, this MoC paves the way for enhancing semiconductor supply chain resilience through strengthened cooperation between India and Japan.
The move is not only significant for the two nations but also holds the potential to contribute to the global semiconductor supply chain, addressing current challenges and fostering innovation in the technology sector.