India and Japan Forge Alliance to Strengthen Semiconductor Ecosystem

In a groundbreaking development, India and Japan have solidified their alliance through a crucial agreement to collaboratively foster the growth of the semiconductor ecosystem. The primary objective of this deal is to bolster the resilience of the global supply chain, with a particular focus on fortifying the critical semiconductor industry. Notably, Japan becomes the second Quad partner, following the United States, to join hands with India in this strategic endeavor.

The memorandum, signed by Union Minister for Electronics and IT, Ashwini Vaishnaw, and Japan’s Minister of Economy, Trade, and Industry, Yasutoshi Nishimura, encompasses several key areas of collaboration. These include semiconductor design, manufacturing, equipment research, and talent development, all of which are aimed at enhancing the robustness and reliability of the semiconductor supply chain.

To ensure effective cooperation between the two nations, an “implementation organization” will be established. This entity will facilitate government-to-government and industry-to-industry collaborations, streamlining communication and coordination to expedite progress in the semiconductor ecosystem.

Japan’s significant standing in the semiconductor industry cannot be underestimated, boasting approximately 100 semiconductor manufacturing plants and being among the top five countries with a robust semiconductor ecosystem. As the semiconductor industry is poised to grow from USD 650 billion to an astounding USD 1 trillion, there is a pressing need for substantial talent growth across various locations worldwide. Recognizing India’s complementary strengths, Japan envisions a mutually beneficial partnership.

The collaboration between Japan and India holds immense potential for India’s semiconductor ambitions. Japan’s global leadership in critical semiconductor elements, such as raw wafer materials, chemicals, gases, and chip manufacturing equipment and display technologies, positions it to transfer valuable knowledge and expertise to India. This partnership aspires to achieve a momentous milestone in the semiconductor industry, unlocking new possibilities and advancing both nations’ technological prowess.