India and Japan have signed a memorandum of understanding (MoU) on semiconductor development. The agreement was signed between Union Minister for Electronics and IT Ashwini Vaishnaw and Japan’s Minister of Economy, Trade and Industry Yasutoshi Nishimura in New Delhi on July 20.
The MoU is on five fronts, namely semiconductor design, manufacturing, equipment research, talent development, and bringing resilience to the semiconductor supply chain, informed Ashwini Vaishnaw. He added that the agreements such as the US-India initiative on Critical and Emerging Technology (iCET) and the one with Japan provided clear directional support when industries from the respective nations engage in talks. The government’s strategy is now evidently focused on supporting industries in India, whether collaborating with the US or Japan, the minister said, adding that discussions were underway to sign a similar agreement with the Japanese company Rapidus.
Vaishnaw underlined that the semiconductor industry is witnessing rapid growth, surpassing $650 million and expected to reach $1 billion within the next five to six years. To meet the increasing demand, a substantial talent pool and significant growth at multiple locations are required. Japan sees India as a reliable partner with complementary strengths, making it an ideal collaboration prospect, he added.