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Union Information Technology Minister Ashwini Vaishinaw said that India and Japan signed a memorandum of cooperation to develop a semiconductor ecosystem in line with Prime Minister Narendra Modi's vision of Make in India.  (Image: @AshwiniVaishnaw/Twitter)

Union Information Technology Minister Ashwini Vaishinaw said that India and Japan signed a memorandum of cooperation to develop a semiconductor ecosystem in line with Prime Minister Narendra Modi’s vision of Make in India. (Image: @AshwiniVaishnaw/Twitter)

This is a huge step forward in India’s efforts to become a global semiconductor hub and will provide access to Japanese expertise and technology, which will help develop a homegrown industry.

India signed a ‘memorandum of cooperation’ with Japan on Thursday to develop a semiconductor ecosystem, while trade union Information Technology Minister Ashwini Vaishinaw said the cooperation will focus on manufacturing, research and design, equipment and talent research and supply chain development.

This link is a huge step forward in India’s efforts to become a global semiconductor manufacturing hub and will provide access to Japanese expertise and technology, which will help the country develop its own semiconductor industry. At a press conference, Vaishinau said, “We have had multiple rounds of discussions with Japanese industry, government and academia. Today we signed the Memorandum of Understanding with Minister of Economy, Trade and Industry Nishimura Yasutoshi. We will transfer it to our industry-to-government cooperation.”

Vaishinau said both countries will soon establish an executive organization to decide on government-industry cooperation. to respond to News 18 On manufacturing silicon wafers in India through this collaboration, he said he will be part of the discussions as a result of this agreement. India, at present, does not produce silicon wafers but imports them from China, Taiwan and Japan.

In addition, the agreement includes a special focus on talent development and both countries will train and raise the skills of semiconductor professionals. On how this collaboration will help increase the talent pool, Vaishaw said News 18: “There will be cooperation to train our people in Japan and also the Japanese in India.”

He also spoke about Japan’s Rapidus, an organization that includes all major companies related to the semiconductor industry – equipment manufacturers, chemical and gas companies, as well as design firms. According to the minister, Rapidus will be a key item for discussion in this collaboration between India and Japan.

“Japanese semiconductor manufacturer Renesas is already operating in India and an agreement has been signed; we are currently talking with Rapidus. It will focus on design, development and manufacturing of semiconductors.”

Vaishinau further said that Japan saw India as a partner where complementary force could be used similar to the way the United States viewed the country. On how this cooperation will work, he said that the discussions between India and Japan took place on the basis of several parts of the value chain, including raw materials.

He said since the demand for raw materials (chemicals and gases) was increasing, the discussion was on whether India could be a destination for the production of raw materials. Already in the country there is Dahej in Gujarat, which is famous for having one of the best chemical ecosystems in the world.

Vaishnau also said that while such an ecosystem increases confidence in the global industry, having a pharmaceutical base in India also helps in getting advanced chemical processing processes. “In this collaboration, we are very open, and would like to focus on all parts of the value chain where there is complementary strength between India and Japan. Whether the production will take place in SCL, Mohali or the new plants, this is not part of the discussion but how we identify and work on complementary strengths” .

The agreement demonstrates the world’s confidence in India’s capabilities and commitment to developing a complete semiconductor ecosystem. The cooperation will have a number of benefits, including reducing dependence on imports, increasing economic growth, strengthening the global supply chain, and increasing technology cooperation and talent development.

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