India, Japan sign MoU on semiconductor development
1 min read 21 Jul 2023, 01:07 AM ISTUnion minister Ashwini Vaishnaw said that the agreement is a substantial step to create a resilient complete value chain
PremiumNew Delhi: India and Japan signed a memorandum of understanding (MoU) on semiconductor development, which will include design, manufacturing, equipment research and talent development.
Union Minister Ashwini Vaishnaw said that the agreement as a substantial step to create a resilient complete value chain.
"The MoU is on five fronts, viz. semiconductor design, manufacturing, equipment research, talent development, and bringing resilience to the semiconductor supply chain," said Vaishnaw.
He added that the agreements such as the U.S.-India initiative on Critical and Emerging Technology (iCET) and the one with Japan provided clear directional support when industries from the respective nations engage in talks. The government's strategy is now evidently focused on supporting industries in India, whether collaborating with the US or Japan, he said.
He added that discussions were underway to sign a similar agreement with the Japanese company Rapidus.
He added that the semiconductor industry is witnessing rapid growth, surpassing $650 million and expected to reach $1 billion within the next five to six years. To meet the increasing demand, a substantial talent pool and significant growth at multiple locations are required. Japan sees India as a reliable partner with complementary strengths, making it an ideal collaboration prospect, he added.
He laid focus on advanced packing, predicting that the next level of semiconductor development will involve sophisticated packaging at multiple levels. India's strength lies in its design capabilities, with over 50 plus designs, making it an attractive destination for semiconductor manufacturing, the minister said.
India is to sign agreements with institutions like Georgia Tech University, he noted, and has already signed one with Caldwell University to build talent for advanced packaging.
The Japan MoU follows investments from Micron Technology which recently announced to set up a semiconductor unit in India with an investment of $2.75 billion and Applied Materials which is going to set up a collaborative R&D centre with an investment of $400 million.
