Japan has become the second Quad partner after the United States to sign an agreement with India for the joint development of the semiconductor ecosystem. The agreement to design, manufacture, equipment research, talent development, and bring resilience to the semiconductor supply chain was signed between Union Minister for Electronics and IT Ashwini Vaishnaw and Japan’s Minister of Economy, Trade and Industry Yasutoshi Nishimura in NewDelhi.
After multiple rounds of discussions between the Indian and Japanese governments, the two nations have signed a Memorandum of Cooperation (MoC) to build a resilient semiconductor ecosystem. Under the MoC, an implementation organization will be created, which will present opportunities for government-to-government and industry-to-industry collaborations.
While India is just beginning its semiconductor manufacturing journey, Japan is a leading player in the industry. It has companies that manufacture chips and provide raw materials such as ingot, wafers, gases, and more to even the world chip leaders such as Taiwan. And as India is aiming to bring semiconductor manufacturing in-house, it will need a resilient supply of all the raw materials, which partnering with a country like Japan can bring in.