The Union Cabinet has approved a Memorandum of Cooperation (MoC) between India and Japan pertaining to a Semiconductor Supply Chain Partnership. The MoC was signed in July, 2023 between the Ministry of Electronics and Information Technology of the Republic of India and the Ministry of Economy, Trade and Industry of Japan on Japan-India Semiconductor Supply Chain Partnership.
This MoC focuses on fostering collaboration in the semiconductor supply chain between India and Japan, recognizing the vital role of semiconductors in advancing various industries and digital technologies.
The MoC becomes effective from the date it was signed and remains valid for a five-year period. It encourages both government-to-government (G2G) and business-to-business (B2B) cooperation to strengthen resilient semiconductor supply chains and make the most of each other’s strengths. The MoC also aims to promote enhanced collaboration, which can lead to increased job opportunities in the IT sector.
MeitY has been actively engaged in creating a conducive environment for electronics manufacturing. The Program for Advancing the Semiconductor and Display Manufacturing Ecosystem in India was introduced with the goal of ensuring the establishment of a strong and sustainable semiconductor and display ecosystem in India.
This initiative aims to provide financial support for the establishment of Semiconductor Fabs, Display Fabs, Fabs for Compound Semiconductors, Silicon Photonics, Sensors, Discrete Semiconductors, as well as facilities for Semiconductor Assembly, Testing, Marking, and Packaging (ATMP) and Outsourced Semiconductor Assembly and Test (OSAT). Further, the India Semiconductor Mission (ISM) has been established under the Digital India Corporation (DIC) to steer India’s strategies for developing the semiconductor and display manufacturing ecosystem in the country.
MeitY is also tasked with promoting international collaboration in emerging and cutting-edge Information Technology areas through bilateral and regional agreements. To achieve this, MeitY has signed Memorandums of Understanding (MoUs), Memorandums of Cooperation (MoCs), and agreements with partner organizations and agencies from various countries. These agreements facilitate bilateral cooperation, information exchange, and contribute to strengthening supply chain resilience, positioning India as a trusted partner. This MoU with Japan is another step in fostering mutually advantageous opportunities and partnerships in the semiconductor industry between Indian and Japanese companies.
In view of synergies and complementarities between the two nations, “India-Japan Digital Partnership” (IJDP) was launched during the visit of PM Modi to Japan in October 2018 furthering existing areas of cooperation as well as new initiatives within the scope of cooperation in Science and Technology, focusing more on “Digital ICT Technologies”. Based on the ongoing IJDP and India-Japan Industrial Competitiveness Partnership (IJICP), this MoC on Japan-India Semiconductor Supply Chain Partnership would further broaden and deepen cooperation in the field of electronics ecosystem.
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