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

A Memorandum of Cooperation (MoC) on the Japan-India Semiconductor Supply Chain Partnership was signed in July 2023 between the Ministry of Electronics and Information Technology (MeitY) of the Republic of India and the Ministry of Economy, Trade, and Industry of Japan. This information was shared with the Union Cabinet, which is led by Prime Minister Mr. Narendra Modi.

The Ministry of Commerce (MoC) aims to expand collaboration between Japan and India in order to improve the semiconductor supply chain. This is because semiconductors are important to the development of industries and digital technologies.

The MoC shall come into effect from the date of signature of the Parties and shall remain in force for a period of five years.

Both G2G and B2B Bilateral Cooperation on opportunities to advance resilient semiconductor supply chain and leverage complementary strengths.

MoC envisions more collaboration resulting in employment opportunities in the IT industry.

MeitY has been making an effort to establish a favourable atmosphere for the production of electronics. In order to guarantee the growth of a strong and long-lasting semiconductor and display ecosystem in India, the Programme for Development of Semiconductor and Display Manufacturing Ecosystem in India was introduced. The aforementioned programme seeks to increase funding for the establishment of semiconductor fabs, display fabs, fabs for compound semiconductors, silicon photonics, sensors, and discrete semiconductors, as well as facilities for semiconductor assembly, testing, marking, and packaging (ATMP) and outsourced semiconductor assembly and testing (OSAT). Additionally, India's plans for the growth of the nation's semiconductor and display manufacturing ecosystem are being spearheaded by the establishment of the India Semiconductor Mission (ISM) under Digital India Corporation (DIC).

"India-Japan Digital Partnership" (IJDP) was introduced during Prime Minister Mr. Narendra Modi's October 2018 visit to Japan in light of the two countries' synergies and complementarities. The programme aims to advance both current areas of cooperation and new initiatives within the scope of S&T/ICT cooperation, with a particular focus on "Digital ICT Technologies." This Memorandum of Understanding on Japan-India Semiconductor Supply Chain Partnership would further widen and deepen the cooperation in the sector of the electronics ecosystem, building on the ongoing IJDP and India-Japan Industrial Competitiveness Partnership (IJICP). This MoC would provide for the improvement of semiconductor supply chain resilience in recognition of the significance of semiconductors for the progress of industries and digital technologies.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.