A ‘fab’ way to conduct India-Japan tech diplomacy

Source: The post is based on the article “A ‘fab’ way to conduct India-Japan tech diplomacy” published in The Hindu on 19^th August 2023.

Syllabus: GS 2 – International Relations

Relevance: India and Japan agreement on semiconductor technology

News: In July 2023, India and Japan reached an agreement to cooperate on semiconductor technology.

What is the agreement about?

The collaboration aims to establish a stronger supply chain for semiconductors and jointly develop the semiconductor ecosystem.

The partnership will focus on five areas: 1) semiconductor design, 2) manufacturing, 3) equipment research, 4) establishing resilience in the semiconductor supply chain, and 5) talent development.

The partnership encourages sharing technical knowledge, research, and innovation between Indian and Japanese semiconductor industries, keeping Japan and India at the forefront of semiconductor progress.

The partnership aims for technology transfer, semiconductor research collaboration, and reciprocal trade. It also prioritizes human resource development through skill exchange programs, workshops, and training.

What measures have been taken by both countries in promoting semiconductor technology?

Both countries support semiconductor manufacturing and research through their policies. India’s “Make in India” and Japan’s “Society 5.0” share self-reliance and innovation-driven growth goals.

Both countries value semiconductors for innovation, growth, and security.

Japan leads in chip production, while India’s IT sector is growing with increasing demand for semiconductors. This provides a solid foundation for their partnership.

Must Read: On the India and Japan relationship and challenges from geopolitical issues

What is the significance of this partnership?

Tackling Technological Challenges: India-Japan partnership holds a key role in shaping the global semiconductor landscape. Their collaboration addresses evolving tech challenges like miniaturization, AI, and quantum computing.

Diversification: In January 2023, Japan and the Netherlands joined the U.S. to restrict chip material exports to China, affecting Japanese chip firms. Thus, the India collaboration becomes vital for Japan in diversifying the semiconductor industry.

Supply Chain Challenges: Geopolitical tensions and supply chain issues underscore the need for diverse semiconductor supply chains and global cooperation.

Hence, collaborative research efforts help in pooling resources to tackle complex semiconductor challenges, driving innovation and solutions.

Unity Among Indo-Pacific Partners: This partnership comes after a recent US-India technological alliance which supports the development of interconnected semiconductor ecosystems.

Hence, bilateral agreements with India by the US and Japan showcase unity among Indo-Pacific partners in critical technology, reflecting shared geostrategic and security interests.

What can be the way ahead?

The agreements demonstrate Quad countries’ trust in India, highlighting India’s semiconductor growth.

Hence, agreement between India and Japan holds significance as it would combine Japan’s tech skill and India’s innovation, fostering advanced electronics, connectivity, and shared technology progress.