Context:
The Union Cabinet has been informed about a Memorandum of Cooperation (MoC) that was signed in July 2023 between India’s Ministry of Electronics and Information Technology and Japan’s Ministry of Economy, Trade, and Industry.
Relevance:
International Relations-Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests.
Significance of the MoC:
- This MoC is centered on the Japan-India Semiconductor Supply Chain Partnership and aims to fortify the collaboration between the two countries in order to bolster the semiconductor supply chain.
- This recognition of the critical role of semiconductors in advancing industries and digital technologies is at the core of this agreement.
- The MoC takes effect from the date of its signing and will remain in force for five years. It encompasses both Government-to-Government (G2G) and Business-to-Business (B2B) bilateral cooperation opportunities designed to advance a resilient semiconductor supply chain and leverage the respective strengths of both nations.
- The MoC also envisions an improved partnership that can lead to increased employment opportunities in the IT sector.
Other initiatives by The Ministry of Electronics and Information Technology (MeitY):
- It introduced the “Programme for Development of Semiconductor and Display Manufacturing Ecosystem in India” to ensure the robust and sustainable development of semiconductor and display ecosystems in the country.
- This program provides fiscal support for the establishment of Semiconductor Fabs, Display Fabs, facilities for Compound Semiconductors/Silicon Photonics/Sensors/Discrete Semiconductors, and Semiconductor Assembly, Testing, Marking, and Packaging (ATMP) facilities, as well as Outsourced Semiconductor Assembly and Test (OSAT) facilities.
- Additionally, the “India Semiconductor Mission (ISM)” has been set up under the Digital India Corporation (DIC) to drive India’s strategies for the development of semiconductor and display manufacturing in the country.
Conclusion:
The “India-Japan Digital Partnership” (IJDP) was launched in October 2018. This initiative builds upon existing areas of cooperation and introduces new initiatives within the scope of Science and Technology (S&T) and Information and Communication Technology (ICT), with a particular focus on digital ICT technologies. Building upon the ongoing IJDP and India-Japan Industrial Competitiveness Partnership (IJICP), this MoC concerning the Japan-India Semiconductor Supply Chain Partnership aims to expand and deepen cooperation within the electronics ecosystem. This MoC acknowledges the significance of semiconductors in advancing industries and digital technologies, contributing to the enhancement of semiconductor supply chain resilience.
