India joins forces with Japan to bolster global semiconductor supply chain amid growing geopolitical Impact

Jingyue Hsiao, DIGITIMES Asia, Taipei 0

Credit: AFP

India approved a plan to partner with Japan to improve the global semiconductor supply chain, as India has benefited from the ubiquitous chips that gain geopolitical implications.

According to the Press Information Bureau of India, India's cabinet approved a Memorandum of Cooperation (MoC) between India and Japan for a bilateral supply chain partnership in semiconductors. The MoC is set to enhance collaboration between the two countries, with the agreement underscoring semiconductors' critical role in driving progress across various industries and digital technologies.

The MoC will officially come into effect from the date of its signing by the involved parties and is slated to endure for five years, and the partnership encompasses government-to-government and business-to-business cooperative efforts.

The MoC followed the India-Japan Digital Partnership launched in October 2018 for science, technology, and ICT cooperation and the Supply Chain Resilience Initiative signed by Quad, including the US, Japan, India, and Australia, in April 2021. Before the MoU, Japan and India signed a Memorandum of Understanding (MoU) in July 2023 for developing the semiconductor ecosystem in India, which covers IC design, manufacturing, equipment research, talent development, and bringing resilience to the semiconductor supply chain.

Japan is the second Quad member to help India develop a local semiconductor ecosystem and diversify global reliance on a few countries regarding the semiconductor supply chain. The US partnered with India to launch the US-India initiative on Critical and Emerging Technology (iCET) in 2022 and signed an MoU on semiconductors in 2023. US President Joe Biden and Indian Prime Minister Narendra Modi reiterated their commitment to building a resilient global semiconductor supply chain at a bilateral meeting before the G20 Summit.

Following the US-India MoU on semiconductors, US-based Micron announced an investment to set up an ATMP plant in India's western state of Gujarat, expected to operate by the end of 2024. Japan-based semiconductor suppliers are expected to invest in India following Micron's investments and the Japan-India MoC, with Disco having expressed interest in building a lab in India.