GS 2: IR

GS 3: Technology

Context:

In July 2023, India and Japan decided to collaborate on semiconductors to fortify the supply chain for this critical technology and promote joint development of the semiconductor ecosystem.

Key Focus Areas:

1. Semiconductor design
2. Manufacturing
3. Equipment research
4. Supply chain resilience
5. Talent development

Industry Expansion and Policy Alignment

• Industry Growth: There’s a surge in the semiconductor industry, especially with the rise of specialised chips. This surge highlights the need for more talent and an increase in semiconductor fabrication plants.
• Shared Objectives: Both nations are striving for technological self-reliance and innovation-driven growth. India’s “Make in India” initiative and Japan’s “Society 5.0” vision underpin this alignment.
• Bilateral Agreements: To foster technology transfer, research collaboration, and mutual trade in semiconductor-related products.

Mutual Benefits and Strategic Alliances

• Exchange of Expertise: The partnership promotes technical knowledge transfer, research, and innovation between the two countries, ensuring both stay at the forefront of semiconductor advancements.

• Geopolitical Significance: Given the geopolitical tensions in the Indo-Pacific region, diversifying semiconductor supply chains and promoting cross-country collaboration are crucial.

• Collaborative Approach: Joint research initiatives pool resources and expertise to tackle challenges in semiconductor design, manufacturing processes, and materials science.

• Human Resource Development: The partnership places emphasis on skills exchange, training, and workshops.

Partnership with the United States

• Background: After the India-Japan deal, India forged a technology partnership with the U.S. covering investment, innovation, and workforce development, ensuring strategic development of complementary semiconductor ecosystems.

• Academic Collaboration: New Delhi is set to sign an agreement with Georgia Tech University.

• Investments: Companies like Micron Technology and Applied Materials have invested in India, further solidifying India’s position in the semiconductor landscape.

Implications on the Global Stage

• S.’s CHIPS and Science Act of 2022: The Act limits semiconductor manufacturing expansion by nations seen as threats to the U.S., including China.

• Semiconductor Export Restrictions: In January 2023, the U.S., Japan, and the Netherlands restricted exports of semiconductor manufacturing materials to China. This decision, although potentially affecting Japanese chip sales to China, emphasizes the geopolitical concerns surrounding China’s growing chip-making capabilities.

• Significance of India: These partnerships underscore the confidence in India by two Quad countries and highlight India’s growing capabilities in the semiconductor sector.

The Future of the Collaboration

• Technological Innovations: As technology progresses, the collaboration will address challenges like semiconductor miniaturisation, AI integration, and quantum computing.

• Global Technology Ecosystem: The partnership will have widespread effects on the global technology ecosystem and the dimensions of geopolitical partnerships in the Indo-Pacific.

Commitment to Excellence: By leveraging Japan’s technological expertise and India’s innovation capacities, the collaboration is set to redefine the future of advanced electronics, connectivity, and technological prowess.