Cabinet Approves Japan-India Semiconductor Supply Chain Partnership Memorandum For G2G, B2B Bilateral Cooperation

The Union Cabinet, presided over by Prime Minister Narendra Modi on Wednesday (25 October) approved a Memorandum of Cooperation (MoC) signed in July 2023 between India and Japan for Semiconductor Supply Chain Partnership. This MoC involves the Ministry of Electronics and Information Technology of India (MEITy) and the Ministry of Economy, Trade, and Industry of Japan.

The primary objective of this MoC is to fortify cooperation between India and Japan, particularly in the realm of the semiconductor supply chain. It underscores the pivotal role of semiconductors in advancing various industries and digital technologies.

The MoC takes effect from the date of its signing and will remain in force for a duration of five years. It encompasses both Government-to-Government (G2G) and Business-to-Business (B2B) collaboration to explore opportunities for bolstering the resilient semiconductor supply chain, capitalising on each other's strengths.

Additionally, the MoC envisions that this enhanced collaboration will lead to increased job opportunities, particularly in the field of Information Technology.

How it happened

This is a result of MEITy's "Programme for Development of Semiconductor and Display Manufacturing Ecosystem in India". It is geared towards providing fiscal support for the establishment of various semiconductor facilities, including Semiconductor Fabs, Display Fabs, Fabs for Compound Semiconductors, Silicon Photonics, Sensors, Discrete Semiconductors, and Semiconductor Assembly, Testing, Marking, and Packaging (ATMP)/Outsourced Semiconductor Assembly and Test (OSAT) facilities.

Furthermore, the "India Semiconductor Mission (ISM)" under Digital India Corporation (DIC) aims to advance India's strategies for developing the semiconductor and display manufacturing ecosystem.

MeitY has been tasked with promoting international cooperation in emerging and frontier areas of Information Technology through bilateral and regional frameworks. To this end, MeitY has entered into Memoranda of Understanding (MoUs), MoCs, and Agreements with counterpart organisations and agencies of various countries to facilitate bilateral cooperation, information exchange, and the establishment of resilient supply chains.

In alignment with the shared goals and strengths of both nations, the "India-Japan Digital Partnership" (IJDP) was launched during PM Modi's visit to Japan in October 2018. This initiative builds on existing areas of cooperation while introducing new initiatives within the scope of Science and Technology/Information and Communication Technology (S&T/ICT), with a primary focus on "Digital ICT Technologies."

Building upon the ongoing IJDP and India-Japan Industrial Competitiveness Partnership (IJICP), the MoC on Japan-India Semiconductor Supply Chain Partnership aims to further deepen and expand cooperation within the electronics ecosystem. Acknowledging the critical role of semiconductors in advancing industries and digital technologies, this MoC is expected to enhance the resilience of the semiconductor supply chain.