India and Japan joined hands to advance semiconductor design

In a significant move to bolster the semiconductor industry, India and Japan have joined hands through a Memorandum of Understanding (MoU) to advance semiconductor design, manufacturing, research, and talent development, and to reinforce the chip supply chain.

The MoU outlines a comprehensive framework for collaboration, with both governments and industries playing crucial roles. An implementation organization will be established to facilitate seamless government-to-government and industry-to-industry cooperation, paving the way for direct communication channels between India and Japan at the highest level.

The Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, announced this historic agreement, underscoring the growing partnership between the two nations in the technology sector.

A key player in this collaboration is the Rapidus Corporation of Japan, a Tokyo-headquartered semiconductor manufacturer, which emerged in August 2022 with substantial support from renowned Japanese entities such as Denso, Kioxia, MUFG Bank, NEC, NTT, SoftBank, Sony, and Toyota. The Rapidus Corporation will play a vital role in executing this memorandum of cooperation.

Talks between Indian authorities and Rapidus are already in the advanced stages, with discussions focused on expanding the corporation’s presence to India.

Minister Vaishnaw highlighted the significance of the partnership, emphasizing that the combined expertise of Indian and Japanese companies would yield substantial advancements in the semiconductor industry.

This collaboration marks the second major country-level agreement that India has entered into, following an earlier pact with the United States to promote cooperation in semiconductor design, manufacturing, packaging, and supply chain resilience.

The agreement comes at a time when the global demand for semiconductors is on the rise, and both India and Japan recognize the need to strengthen their positions in this critical industry. By combining the strengths of Indian and Japanese companies, the partnership aims to foster an integrated and robust semiconductor ecosystem. With US companies recognized as global leaders in manufacturing and packaging and Japanese firms excelling in peripheral industries essential for semiconductor chip manufacturing, such as the production of specialized chemicals and gases, this collaboration promises to bring forth significant advancements in semiconductor technology.