India and Japan MoC to boost semiconductor resilience gets cabinets approval

The Union Cabinet, Chaired  by Prime Minister  Narendra Modi, has been informed of a Memorandum of Cooperation (MoC) inked 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, focusing on the Japan-India Semiconductor Supply Chain Partnership.

This MoC aims to bolster collaboration between India and Japan in strengthening the semiconductor supply chain, acknowledging the pivotal role of semiconductors in advancing industries and digital technologies. The MoC takes effect from the date of signing and remains in force for five years.

It encompasses both Government-to-Government (G2G) and Business-to-Business (B2B) cooperation to explore opportunities for enhancing a resilient semiconductor supply chain and leveraging each other’s strengths. The MoC envisions closer collaboration that will result in increased job opportunities in the IT sector.

The Ministry of Electronics and Information Technology (MeitY) has actively worked to create an enabling environment for electronics manufacturing. The Program for Development of Semiconductor and Display Manufacturing Ecosystem in India was introduced to establish a robust and sustainable semiconductor and display ecosystem in the country.

This program provides fiscal support for setting up 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.

In addition, the India Semiconductor Mission (ISM) was established under Digital India Corporation (DIC) to drive India’s strategies for the development of the semiconductor and display manufacturing ecosystem in the country.

MeitY has also been tasked with promoting international cooperation in emerging and frontier areas of Information Technology through bilateral and regional frameworks. To achieve this, MeitY has entered into Memoranda of Understanding (MoUs), Memoranda of Cooperation (MoCs), and agreements with counterpart organizations and agencies from various countries to foster bilateral cooperation, exchange of information, and enhance supply chain resilience, positioning India as a trusted partner. Enhancing mutual collaboration between Japanese and Indian companies through this MoU is another step towards mutually beneficial semiconductor-related business opportunities and partnerships between India and Japan.

Recognizing the synergies and complementarities between the two nations, the “India-Japan Digital Partnership” (IJDP) was launched during Prime Minister Modi’s visit to Japan in October 2018, extending cooperation in science and technology/ICT and emphasizing “Digital ICT Technologies.” Building upon the ongoing IJDP and India-Japan Industrial Competitiveness Partnership (IJICP), this MoC on the Japan-India Semiconductor Supply Chain Partnership aims to broaden and deepen cooperation in the electronics ecosystem. Acknowledging the importance of semiconductors in advancing industries and digital technologies, this MoC will enhance semiconductor supply chain resilience.

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