Japan becomes second Quad partner to sign semiconductor agreement with India

Tags: International Relations

India and Japan recently signed an agreement to jointly develop the semiconductor ecosystem, strengthening their partnership and resilience in the global supply chain.

An Overview of the News

• The memorandum signed by Union Electronics and IT Minister Ashwini Vaishnav and Japan's Minister of Economy, Trade and Industry Yasutoshi Nishimura covers various areas of cooperation.

• This marks Japan as the second Quad partner after the United States to collaborate with India to enhance the semiconductor industry.

• The agreement covers various areas of cooperation, including semiconductor design, manufacturing, device research and talent development, with the aim of ensuring a robust and reliable semiconductor supply chain.

• To facilitate efficient cooperation, the two countries will set up an "implementing organisation" to promote government-to-government and industry-to-industry partnerships.

Recognizing Japan's Semiconductor Expertise

• Japan holds a significant position in the semiconductor industry with nearly 100 semiconductor manufacturing plants, making it one of the top five countries with a strong semiconductor ecosystem.

• The projected growth of the semiconductor industry from US$650 billion to US$1 trillion requires talent development in multiple locations around the world, and Japan sees India's complementary strengths as a valuable opportunity for mutual benefit.

• Japan has expertise in critical semiconductor elements such as raw wafer materials, chemicals, gases and chip manufacturing equipment and display technologies.

• By transferring this knowledge and expertise to India, both countries aim to achieve significant milestones in the semiconductor industry.

About Japan

• It is also called Nihon or Nippon and is an archipelago in the western Pacific Ocean in East Asia.

• It is made up of four main islands Hokkaido, Honshu, Shikoku and Kyushu and Honshu is the largest island of Japan.

• Its highest mountain is Mount Fuji.

• It is the third largest economy in the world after the United States and China.

• Capital - Tokyo

• currency - yen

• Prime Minister - Fumio Kishida