Cabinet approval on MoU for Japan-India Semiconductor Supply Chain Partnership

The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has been informed about a Memorandum of Cooperation (MoC) signed in July 2023 between the Ministry of Electronics and Information Technology of India and the Ministry of Economy, Trade, and Industry of Japan. This MoC pertains to the Japan-India Semiconductor Supply Chain Partnership.

The primary objective of the MoC is to bolster cooperation between India and Japan to enhance the semiconductor supply chain. Both countries acknowledge the critical role of semiconductors in advancing industries and digital technologies. The MoC will be effective from the date of its signing and will remain in force for a period of five years.

This agreement encompasses governmental-to-governmental (G2G) and business-to-business (B2B) cooperation, with a focus on strengthening the semiconductor supply chain and capitalizing on the complementary strengths of both nations. The MoC also aims to foster collaboration that leads to employment opportunities in the IT sector.

Background:

• The Ministry of Electronics and Information Technology (MeitY) has actively worked to create a conducive environment for electronics manufacturing in India. It introduced the Program for the Development of Semiconductor and Display Manufacturing Ecosystem in India, which provides fiscal support for the establishment of semiconductor fabs, display fabs, and facilities for compound semiconductors, silicon photonics, sensors, discrete semiconductors, and semiconductor assembly, testing, marking, and packaging (ATMP).
• India Semiconductor Mission (ISM) was established to drive India’s strategies for the development of the semiconductor and display manufacturing ecosystem.
• MeitY has also been tasked with promoting international cooperation in emerging and frontier areas of Information Technology under bilateral and regional frameworks. As part of this effort, MeitY has entered into agreements with counterpart organizations and agencies in various countries to encourage bilateral cooperation and information exchange, ultimately enhancing India’s role as a trusted partner.

The MoC on Japan-India Semiconductor Supply Chain Partnership aligns with the existing “India-Japan Digital Partnership” and “India-Japan Industrial Competitiveness Partnership.” It focuses on strengthening cooperation in the electronics ecosystem and emphasizes the significance of semiconductors in advancing industries and digital technologies, with the goal of enhancing semiconductor supply chain resilience.