India-Japan semiconductor manufacturing ecosystem agreement
India and Japan have signed a memorandum of understanding to collaborate on the chip manufacturing environment. The announcement of the cooperation follows the major US-based semiconductor company Micron Technology’s announcement that it intends to invest in an assembly plant in the country with a total cost of $2.7 billion.
NEW DELHI: India signed a Memorandum of Cooperation (MoC) with Japan on Thursday to build a semiconductor ecosystem in the country. The goals of the MoC are to grow a semiconductor manufacturing ecosystem, research, and talent.This is the second time the government has done something like this. In March 2023, a similar MoU was signed with the US.
“India’s plans for semiconductors are moving forward very quickly and step by step. We are getting to new points. “Today, a very important step has been taken,” said Ashwini Vaishnaw, the Minister of Electronics and Information Technology.
Micron Technology, a big US company that makes semiconductors, said it would spend $2.7 billion in an assembly plant in the country. This led to the partnership. Also, companies like Vedanta Limited and Foxconn are thinking about applying for the country’s semiconductor reward programmes.
In December 2021, the government said that it would give a PLI incentive of $10 billion crore to help build a semiconductor environment in the country.Vaishnaw said that the government talked with Japanese business, the Japanese government, and Japanese academics several times before making the choice.
“Rapidus, a company from Japan, will help pay attention to the whole value chain, instead of just focused on fabrication like other countries do. We usually have in-depth talks with Japan, and once a deal is made, it stays in place for years,” the minister said.
Rapidus Corp. is set up in Japan with the help of eight of the country’s biggest companies, such as SoftBank, Sony, and Toyota.Japan is a major player in the semiconductor industry, and some of its companies supply raw materials like ingot, wafers, gases, and more to even the world’s chip leaders like Taiwan.
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