In yet another step in making Bharat Atmanirbhar in the semiconductor sector, the Union Cabinet chaired by Prime Minister Shri Narendra Modi on 25 October approved a Memorandum of Cooperation (MoC) signed between India and Japan for cooperation in the semiconductor industry. The MoC was signed in July 2023 between the Ministry of Electronics and Information Technology of the Indian government and the Ministry of Economy, Trade and Industry of Japan on the Japan-India Semiconductor Supply Chain Partnership.
The Memorandum of Cooperation intends to strengthen cooperation between India and Japan towards the enhancement of the semiconductor supply chain, recognizing the importance of semiconductors for the advancement of industries and digital technologies.
The MoC comes into effect from the date of signature of the Parties and shall remain in force for a period of five years. It covers both govt-to-govt and business-to-business Bilateral Cooperation on opportunities to advance resilient semiconductor supply chains and leverage complementary strengths.
It further envisages improved collaboration between India and Japan leading to employment opportunities in the field of Information Technology including the semiconductor sector, a statement issued by the union cabinet said.
It is notable that 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.
This program aims to extend fiscal support for the establishment of 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, the India Semiconductor Mission (ISM) has been established under Digital India Corporation (DIC) to drive India’s strategies for the development of the semiconductor and display manufacturing ecosystem in the country.
The semiconductor mission, launched in December 2021, aims to position India as a significant player in semiconductor technology.
The Ministry of Electronics and Information Technology has also been mandated to promote international cooperation in the emerging and frontier areas of Information Technology under bilateral and regional frameworks. With this objective, MeitY has entered into MoUs/MoCs/Agreements with counterpart organizations/agencies of various countries to promote bilateral cooperation and exchange of information and also to ensure supply chain resilience enabling India to emerge as a trusted partner. Enhancing mutual collaboration between Japan and Indian companies through this MoU is another such step towards mutually beneficial semiconductor-related business opportunities and partnerships between India & Japan.
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 furthering existing areas of cooperation as well as new initiatives within the scope of cooperation in S&T/ICT, 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 semiconductors for the advancement of industries and digital technologies, this MoC would provide for the enhancement of semiconductor supply chain resilience.
It is notable that the “Bhoomi Pujan” (groundbreaking ceremony) for the country’s first semiconductor plant took place in Gujarat’s Sanand on Saturday, 23 September. The plant is being set up by US-based Micron Technology, which is investing ₹22,500 crore in the project. The Assembly, Test, Marking and Packaging (ATMP) of Micron is expected to be commissioned within 18 months.