Cabinet Approves MoC between India and Japan for Semiconductor Supply Chain Partnership
New Delhi, 25th October 2023 – In a significant move to enhance cooperation between India and Japan in the field of semiconductor supply chain, the Union Cabinet, led by Prime Minister Shri Narendra Modi, was apprised of a Memorandum of Cooperation (MoC) signed in July 2023. The MoC was established between the Ministry of Electronics and Information Technology of the Republic of India and the Ministry of Economy, Trade and Industry of Japan. This partnership aims to strengthen the semiconductor supply chain, recognizing its vital role in advancing industries and digital technologies.
The MoC is set to come into effect from the date of its signing by the involved parties and will remain in force for a substantial period of five years. It emphasizes both Government-to-Government (G2G) and Business-to-Business (B2B) cooperation to enhance the resilience of the semiconductor supply chain and leverage each nation’s complementary strengths. The collaboration is expected to result in increased employment opportunities in the IT sector.
The Ministry of Electronics and Information Technology (MeitY) has been actively working to create a conducive environment for electronics manufacturing in India. A crucial step in this direction was the introduction of the “Programme for Development of Semiconductor and Display Manufacturing Ecosystem in India.” This program aims to support the establishment of Semiconductor Fabs, Display Fabs, as well as facilities for Compound Semiconductors, Silicon Photonics, Sensors, Discrete Semiconductors, Semiconductor Assembly, Testing, Marking, and Packaging (ATMP), and Outsourced Semiconductor Assembly and Test (OSAT).
Additionally, the “India Semiconductor Mission (ISM)” has been established under “Digital India Corporation (DIC)” to drive India’s strategies for the development of a sustainable 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 under bilateral and regional frameworks. To achieve this, MeitY has entered into Memorandums of Understanding (MoUs), Memorandums of Cooperation (MoCs), and agreements with counterpart organizations/agencies of various countries. These agreements aim to promote bilateral cooperation, exchange information, and ensure supply chain resilience to enable India to emerge as a trusted partner.
The MoC between India and Japan on Japan-India Semiconductor Supply Chain Partnership aligns with the ongoing “India-Japan Digital Partnership” (IJDP) that was launched during Prime Minister Modi’s visit to Japan in October 2018. This partnership focuses on existing areas of cooperation and new initiatives within the scope of Science and Technology (S&T) and Information and Communication Technology (ICT), with a special emphasis on “Digital ICT Technologies.”
Building upon the existing IJDP and the “India-Japan Industrial Competitiveness Partnership (IJICP),” this MoC is expected to further broaden and deepen cooperation in the field of the electronics ecosystem. Recognizing the importance of semiconductors in advancing industries and digital technologies, this partnership aims to enhance the resilience of the semiconductor supply chain.
In conclusion, the Memorandum of Cooperation between India and Japan for a Semiconductor Supply Chain Partnership marks a significant step in strengthening bilateral relations and enhancing cooperation in the field of electronics and digital technologies. This partnership is poised to drive economic growth and employment opportunities, underlining the importance of a resilient semiconductor supply chain.