Memorandum of Cooperation (MoC) between India and Japan on Semiconductor Supply Chain Partnership
Cabinet approves Memorandum of Cooperation (MoC) between India and Japan on Semiconductor Supply Chain Partnership.
It was signed in July 2023 and shall remain in force for a period of five years.
It intends to strengthen cooperation between India and Japan towards.
- Enhancement of the semiconductor supply chain through Government to Government and Business to Business Cooperation.
- Recognizing the importance of semiconductors for the advancement of industries and digital technologies.
- Improving employment opportunities in the field of IT.
Significance of resilient semiconductor supply chain:
- for Industrial Revolution 4.0., powering renewable energy systems,
- enabling green transportation, facilitating electronic device manufacturing, etc.
Challenges for the Semiconductor supply chain for India.
- Nascent stage: India accounts for 1% of global trade in semiconductors and 0.5% of global semiconductor sales.
- Lack of Manufacturing Clusters: for building a successful semiconductor production ecosystem.
- Concentrated manufacturing: About 75% of global semiconductor manufacturing capacity is concentrated in China and East Asia.
♦ 100% of the world’s most advanced (below 10 nanometers) semiconductors are located in Taiwan and South Korea.
Way Forward
- Focus on market-based incentive programs aimed at advancing India’s semiconductor research, design, and production capabilities.
- Focus on filling in key gaps and vulnerabilities like design infrastructure, Patent protection, workforce development, etc.
Initiatives by the government for semiconductors
- Program for Development of Semiconductor and Display Manufacturing Ecosystem in India to ensure the development of a robust and sustainable semiconductor and display ecosystem.
- India Semiconductor Mission under Digital India Corporation to drive India’s strategies for the development of the semiconductor and display manufacturing ecosystem.