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Japan-India Semiconductor Supply Chain Partnership

26th October, 2023 International Relations

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  • The Union Cabinet has approved the Memorandum of Cooperation between India and Japan on the Japan-India Semiconductor Supply Chain Partnership.


  • The "India-Japan Digital Partnership" (IJDP) was launched during the visit of PM Modi to Japan in October 2018.
  • The aim was to further 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.

Efforts in the direction of building the Semiconductor Ecosystem

  • MeitY has been actively working to create a conducive environment for electronics manufacturing.
  • The Program for the Development of a 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 said program aims to extend fiscal support for the establishment of 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, 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.
  • MeitY has entered into MoUs/MoCs/Agreements with counterpart organizations/agencies of various countries to promote bilateral cooperation and exchange of information.
  • This is 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 & and Japan.



Q. The Indian Semiconductor Industry is set for a stable upsurge with bright prospects provided India's generic obstacles are adequately addressed. What are the challenges specific to India? Shed light on the efforts that are being taken by the Government in this context and also suggest a suitable way forward.