Cabinet approves MoC between India and Japan for semiconductor supply chain partnership

New Delhi: The Union Cabinet has approved a Memorandum of Cooperation (MoC) between India and Japan for semiconductor supply chain partnership. The approval came during the cabinet chaired by Prime Minister Narendra Modi on Wednesday. The MoC was signed 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 on Japan-India Semiconductor Supply Chain Partnership, according to an official statement by Ministry of Electronics & IT.

The MoC intends to strengthen cooperation between India and Japan towards enhancement of semiconductor supply chain. "The MoC shall come into effect from the date of signature of the parties and shall remain in force for a period of five years. Both G2G and B2B bilateral cooperation is providing opportunities to advance resilient semiconductor supply chain and leverage complementary strengths", the statement said. The memorandum envisages improved collaboration leading to employment opportunities in the field of IT.

India-Japan Digital Partnership

It is pertinent to mention here that in view of synergies and complementarities between the two nations, "India-Japan Digital Partnership" (IJDP) was launched during the visit of PM Modi to Japan in October 2018 focusing more on "Digital ICT Technologies". Based on the ongoing IJDP and India-Japan Industrial Competitiveness Partnership (IJICP), this MoC on Japan-India Semiconductor Supply Chain Partnership would further broaden and deepen the cooperation in the field of electronics ecosystem. "Recognizing the importance of semiconductor for the advancement of industries and digital technologies, this MoC would provide for the enhancement of semiconductor supply chain resilience", it added.

The chip manufacturing so far

MeitY has been actively working to create a conducive environment for electronics manufacturing. Programme for development of semiconductor and display manufacturing ecosystem in India was introduced with a view to ensure the development of a robust and sustainable semiconductor and display ecosystem in India. The program aims to extend fiscal support for establishment the 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. Further, India Semiconductor Mission (ISM) has been established under Digital India Corporation (DIC) to drive India's strategies for development of semiconductor and display manufacturing ecosystem in the country.

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