The Union Cabinet has given its approval to a partnership between India and Japan in the semiconductor supply chain, as per an official statement. This partnership agreement was signed in July and aims to strengthen cooperation in the semiconductor industry, recognizing its importance for various industries and digital technologies.

Japan is the second Quad partner (after the United States) to join hands with India for the development of

the semiconductor ecosystem and the resilience of global supply chains. The agreement will be in effect for five years from the date of signing.

The partnership involves both government-to-government (G2G) and business-to-business (B2B) cooperation to enhance the semiconductor supply chain. India and Japan have previously launched the “India-Japan Digital Partnership” (IJDP) in 2018 to

promote collaboration in science, technology, and information and communications technologies.

Building on the existing IJDP and the “India-Japan Industrial Competitiveness Partnership” (IJICP), this memorandum of cooperation (MoC) on the “Japan-India Semiconductor Supply Chain Partnership” will further expand and deepen their collaboration in the electronics industry.

Japan is one of the top five countries with a well-established

semiconductor ecosystem, boasting approximately 100 semiconductor manufacturing plants. This partnership will likely lead to advancements in semiconductor technology and contribute to the growth of both countries’ economies.