The Cabinet has granted approval for an India-Japan collaboration aimed at enhancing the semiconductor supply chain.

26 Oct, 2023

The Cabinet has granted approval for an India-Japan collaboration aimed at enhancing the semiconductor supply chain.

The Union Cabinet, in its session on October 25, greenlit the memorandum of cooperation (MoC) inked between India and Japan back in July. This MoC signifies a significant step toward bolstering the semiconductor supply chain.

The government, in an official statement, highlighted the intent behind this MoC: "The MoC intends to strengthen cooperation between India and Japan towards enhancement of the semiconductor supply chain, recognizing the significance of semiconductors in propelling industrial and digital technology progress."

Effective from the date of signing by both countries, this memorandum is set to remain in effect for a five-year period.

This venture builds upon the longstanding collaboration between India and Japan, which originated with the launch of the India-Japan Digital Partnership (IJDP) during Prime Minister Modi's visit to Japan in October 2018. The IJDP was envisioned to foster cooperation in the realm of digital ICT technologies.

Recognizing the synergies and complementarities shared by these two nations, the "India-Japan Digital Partnership" (IJDP), in conjunction with the India-Japan Industrial Competitiveness Partnership (IJICP), is expected to further enrich the cooperation within the electronics ecosystem. The collaboration aims to deepen ties and explore new initiatives in the sphere of S&T/ICT, with a particular emphasis on "Digital ICT Technologies."

The Indian government, through the Ministry of Electronics and Information Technology, is actively working toward the creation of a self-reliant electronics manufacturing ecosystem. This endeavor is backed by the Programme for Development of Semiconductor and Display Manufacturing Ecosystem, offering fiscal support for the establishment of various semiconductor facilities, including Semiconductor Fabs, Display Fabs, and more. Additionally, it encompasses Semiconductor Assembly, Testing, Marking, and Packaging (ATMP) and Outsourced Semiconductor Assembly and Test (OSAT) facilities.

To drive India's semiconductor and display manufacturing ecosystem development strategies, the India Semiconductor Mission (ISM) has been established under the Digital India Corporation (DIC). This initiative is aimed at bolstering India's position in the semiconductor and display manufacturing landscape.