CHIP
PACT - ECONOMY
News:
Japan signs chip pact
with India
What's
in the news?
● Japan
has become the second Quad partner after the United States to sign an agreement
with India for the joint development of the semiconductor ecosystem and maintain
the resilience of its global supply chain.
Key
takeaways:
● The
memorandum signed by Union Minister for Electronics and IT, Ashwini Vaishnaw,
and Japan’s Minister of Economy, Trade, and Industry, Yasutoshi Nishimura,
encompasses various areas of collaboration.
● These
include semiconductor design,
manufacturing, equipment research, and talent development.
● The
ultimate goal is to enhance the semiconductor supply chain’s robustness and
ensure its reliability.
Implementation
Organization:
● To
facilitate efficient cooperation between the two nations, they will establish
an “implementation organization.”
● This
organization will foster
government-to-government and industry-to-industry collaborations.
● By
streamlining communication and coordination, both countries seek to expedite
progress in the semiconductor ecosystem.
Japan’s
Semiconductor Expertise:
● Japan’s
prominence in the semiconductor industry cannot be understated.
● With
approximately 100 semiconductor manufacturing plants, it stands among the top five
countries with a robust semiconductor ecosystem.
● As
the semiconductor industry is projected to grow from USD 650 billion to a
staggering USD 1 trillion, it necessitates significant talent growth across
multiple locations worldwide.
● Japan
recognizes India’s complementary strengths and envisions a mutually beneficial
partnership.
Transferring
Key Technologies to India:
● The
collaboration between Japan and India holds immense potential for India’s
semiconductor ambitions.
● Japan
boasts global leaders in critical semiconductor elements such as raw wafer materials, chemicals, gases, and
lenses used in chip manufacturing equipment and display technologies.
● By
transferring this valuable knowledge and expertise to India, both nations hope
to achieve a momentous milestone in the semiconductor industry.