The Union Cabinet has granted its approval for the agreement between the Ministry of Electronics and Information Technology and the Ministry of Economy, Trade, and Industry of Japan regarding the Japan-India Semiconductor Supply Chain Partnership, as stated in an official release on Wednesday.
This Memorandum of Cooperation (MoC), which was formally executed in July of this year and is set to be effective for a period of five years, aims to bolster collaboration between India and Japan in the realm of semiconductor supply chain advancement. It underscores the vital role of semiconductors in the progression of industries and digital technologies.
The focus of this agreement will revolve around fostering both government-to-government (G2G) and business-to-business (B2B) cooperation to bolster the resilience of the semiconductor supply chain and make the most of each nation's complementary strengths.
The MoC anticipates that this enhanced collaboration will create employment opportunities within the IT sector. The Ministry of Electronics and Information Technology (MeitY) has been actively working to create a favorable environment for electronics manufacturing. To achieve this, a program was initiated to develop a robust and sustainable semiconductor and display manufacturing ecosystem in India.
This program seeks to provide financial support for the establishment of semiconductor fabrication facilities, display fabrication facilities, facilities for compound semiconductors, silicon photonics, sensors, discrete semiconductors, and semiconductor assembly, testing, marking, and packaging (ATMP) and outsourced semiconductor assembly and test (OSAT) facilities.
MeitY is also tasked with promoting international cooperation in emerging and cutting-edge areas of information technology through bilateral and regional frameworks. The signing of this Memorandum of Cooperation is a step forward in enhancing mutual collaboration between Japanese and Indian companies in the field of semiconductors, fostering mutually beneficial business opportunities and partnerships.
The "India-Japan Digital Partnership" (IJDP) was initiated during Prime Minister Modi's visit to Japan in October 2018, based on the synergies and complementary attributes of the two nations. Building upon the ongoing IJDP and the India-Japan Industrial Competitiveness Partnership, this MoC on the Japan-India Semiconductor Supply Chain Partnership will further broaden and deepen cooperation within the electronics ecosystem.
Recognizing the pivotal role of semiconductors in advancing industries and digital technologies, this MoC is set to fortify the resilience of the semiconductor supply chain, as indicated in the official statement.
