According to an official announcement on Wednesday, the Union Cabinet has approved the agreement between the Ministry of Electronics and Information Technology and the Ministry of Economy, Trade, and Industry of Japan about the Japan-India Semiconductor Supply Chain Partnership.
In July of this year, this Memorandum of Cooperation (MoC) was officially inked with a five-year expiration date. Its purpose is to enhance cooperation between Japan and India concerning the growth of semiconductor supply chains. It emphasizes how important semiconductors are to the development of digital technology and industries.
This agreement will emphasize business-to-business (B2B) and government-to-government (G2G) collaboration in order to maximize the complementary advantages of each country and strengthen the robustness of the semiconductor supply chain.
The Ministry of Communications expects that increased cooperation will lead to job possibilities in the IT industry. A conducive atmosphere for the production of electronics has been aggressively sought after by the Ministry of Electronics and Information Technology (MeitY). In order to do this, a program was started in India to create a strong and long-lasting semiconductor and display manufacturing ecosystem.
In addition to facilities for compound semiconductors, silicon photonics, sensors, discrete semiconductors, semiconductor assembly, testing, marking, and packaging (ATMP), and outsourced semiconductor assembly and test (OSAT), this program aims to provide financial support for the establishment of these facilities.
Through bilateral and regional frameworks, MeitY is also entrusted with fostering international collaboration in cutting-edge and developing fields of information technology. By creating mutually advantageous business possibilities and collaborations, the signing of this Memorandum of Cooperation is a step toward improving mutual cooperation between Japanese and Indian enterprises in the semiconductor industry.
Based on the shared interests and advantages of the two countries, Prime Minister Modi launched the “India-Japan Digital Partnership” (IJDP) during his October 2018 visit to Japan. This Memorandum of Understanding on the Japan-India Semiconductor Supply Chain Partnership will expand and strengthen collaboration within the electronics ecosystem, building on the current IJDP and the India-Japan Industrial Competitiveness Partnership.
According to the official release, this MoC aims to strengthen the robustness of the semiconductor supply chain, acknowledging the critical role that semiconductors play in developing digital technologies and industries.