India And Japan Join Forces For Joint Development Of Semiconductor Ecosystem, Resilient Global Supply Chain

After the United States, Japan has become the second Quad nation to sign an agreement with India for the joint development of the semiconductor ecosystem and the maintenance of a resilient global supply chain.

The agreement was signed between Union Minister for Electronics and IT Ashwini Vaishnaw and Japan's Minister of Economy, Trade and Industry Yasutoshi Nishimura in Delhi on Thursday (20 July).

"Japan and India have signed a memorandum for semiconductor design, manufacturing, equipment research, talent development and to bring resilience in the semiconductor supply chain," Vaishnaw said, reports Economic Times.

To facilitate government-to-government and industry-to-industry cooperation, the two nations will create an "implementation organisation", Vaishnaw added.

Vaishnaw emphasised the importance of India and Japan as partners in ensuring a resilient semiconductor supply chain.

Japan is considered one of the top five countries with a strong semiconductor ecosystem, boasting approximately 100 semiconductor manufacturing plants.

This growth will require a significant increase in talent and expansion in various locations worldwide, he added.

"Japan sees India as a partner where complimentary strengths can be used," Vaishnaw said.

The minister highlighted Japan's position as a global leader in various aspects of semiconductor manufacturing, including the production of raw semiconductor wafers, chemicals and gases, as well as lenses used in chip manufacturing equipment and display technologies.

Bringing Japan's expertise to India would be a significant milestone, according to Vaishnaw.

The government has already initiated discussions with Rapidus, Japan's state-backed semiconductor industry body, to explore collaboration opportunities in this sector.

The minister stated that China's decision to restrict the export of gallium and germanium, which are critical semiconductor elements, has minimal impact as there are numerous alternative sources for these elements worldwide.