India And Japan Sign MoU To Boost Semiconductor Industry Collaboration

India and Japan on Thursday joined hands through a memorandum of understanding (MoU), aiming to advance semiconductor design, manufacturing, research, talent development, and reinforce the chip supply chain. 

The memorandum outlines a comprehensive framework for collaboration, with both governments and industries playing crucial roles. An implementation organisation will be established to facilitate seamless government-to-government and industry-to-industry cooperation, paving the way for direct communication channels between India and Japan at the highest level.

The Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, announced the historic agreement, reflecting the growing partnership between the two nations in the technology sector.

A key player in this collaboration is the Rapidus Corporation of Japan, a Tokyo-headquartered semiconductor manufacturer that emerged in August 2022, with substantial support from renowned Japanese entities such as Denso, Kioxia, MUFG Bank, NEC, NTT, SoftBank, Sony, and Toyota. The Rapidus Corporation will play a vital role in the execution of this memorandum of cooperation. 

Talks between the Indian authorities and Rapidus are already in the advanced stages, with discussions focused on expanding the corporation's presence to India.

Minister Vaishnaw highlighted the significance of the partnership, emphasising that the combined expertise of Indian and Japanese companies would yield substantial advancements in the semiconductor industry. 

This collaboration comes as the second major country-level agreement that India has entered into, following an earlier pact with the United States to promote cooperation in semiconductor design, manufacturing, packaging, and supply chain resilience.

While companies from the United States are recognised global leaders in manufacturing and packaging, Japanese firms excel in peripheral industries essential for semiconductor chip manufacturing, such as the production of specialized chemicals and gases. By combining these strengths, the agreement aims to foster an integrated and robust semiconductor ecosystem.