India and Japan, in July 2023, agreed to collaborate on semiconductors in a bid to create a more resilient supply chain for this critical technology and work together for the joint development of the semiconductor ecosystem. The partnership will focus on five areas: ‘semiconductor design, manufacturing, equipment research, establishing resilience in the semiconductor supply chain, and talent development’, paving the way for government-to-government and industry-to-industry collaborations.
An alignment of policies
The deal comes in the wake of the rapid expansion in the semiconductor industry, particularly the importance of specialised chips, which has prompted the need for growing the pool of talent available in the industry alongside increasing the number of semiconductor fabrication plants (fabs). The partnership fosters the exchange of technical knowledge, research, and innovation between the Indian and Japanese semiconductor industries, facilitates technology transfer, and enables Tokyo and New Delhi to stay at the forefront of semiconductor advancements.
