Cabinet approves India-Japan chip supply chain partnership

• Recently, the Union Cabinet of India approved a Memorandum of Cooperation (MoC) between India and Japan aimed at establishing a semiconductor supply chain partnership.
• This partnership will focus on research and development (R&D), manufacturing, design and talent development for the semiconductor industry.
• It is part of India's efforts to establish a reliable presence in the global semiconductor supply chain.

Semiconductor Importance

• The MoC recognizes the critical importance of semiconductors in advancing various industries and digital technologies
• Therefore, it intends to strengthen cooperation between India and Japan towards enhancement of the semiconductor supply chain,

India's Semiconductor Ambitions

• India is making significant efforts to boost its semiconductor manufacturing capabilities, particularly as companies seek to diversify away from China.
  • Presently, China is a dominant hub for electronics manufacturing.
• The Indian government has launched a $10 billion plan to promote local chip manufacturing.

Global Supply Chain Resilience

• India and the United States are collaborating on building resilient global semiconductor supply chains.
• The partnership aligns with the broader efforts to secure semiconductor supplies and reduce dependence on a single manufacturing hub.

Prelims Takeaway

• Semiconductors