NEWS

India Is On The Way To Bring Next Semiconductor Power

The Union Cabinet has agreed to a Memorandum of Cooperation (MoC) signed back in July 2023 between India and Japan for Semiconductor Supply Chain Partnership. The MoC is to be signed soon, lays the foundations for both Government-to-Government (G2G) as well Business-to-Business (B2B) collaboration for expanding the opportunities to bolster a resilient semiconductor supply chain, capitalising the strength of each other. 

Semiconductors is a material product usually composed of silicon, and a strategic mechanism asset in the present globalised era. It  helps in conducting car batteries, laptops, smartphones, household gadgets, and whatnot. Basically semiconductors are the fulcrum which powers and manages the electronic world. 

And fortunately India realises the immense importance of semiconductors, apart from this the country also knows that becoming self-reliant in this sphere is now more important than ever. So, finally India is building international partnerships to create alternate microchip supply chains and also for securing supplies for itself. 

The India-Japan Digital Partnership was first launched during the rule of Prime Minister Narendra Modi’s visit to Japan in October 2018. The two well known and established countries agreed to further existing areas of cooperation focusing more on “Digital ICT Technologies”. Whereas Japan has become the second Quad partner after the US to sign an agreement with India for Joining the development of the semiconductor ecosystem and maintaining the resilience of its global supply chain. 

It seems that a partnership with India would be valuable for Japan, which has seen its share of the global semiconductor market fall from 50% in the late 1980s to about 10% now. And the strategy of Japan is to triple sales of chips made in the county to 15 trillion yen by 2023 by just fire up investment and providing multiple forms of support. 

Basically, partnering with India will surely be helpful for Japan which leads into a huge pool of microchip design and intellectual labour. The fact is a large portion of semiconductor design engineers globally belong to India. Meanwhile the chipping firms such as Intel and NVIDIA already have huge facilities in India replete with talent. Let’s see how far this partnership goes.

Related Articles

Back to top button