Date : 19/08/2023

Relevance – GS Paper 2 – International Relations

Keywords – Semiconductor, Five-Fold Focus, Make in India, Society 5.0, CHIPS and Science Act of 2022

Context

In a significant development, India and Japan have joined forces in July 2023 to establish a strategic collaboration in the field of semiconductors. This partnership aims to enhance the resilience of the semiconductor supply chain, a technology critical to various industries, while also focusing on fostering innovation and talent development within the semiconductor ecosystem. The collaboration underscores the growing importance of cross-country cooperation in an era marked by supply chain disruptions and geopolitical tensions.

The Five-Fold Focus:

The partnership between India and Japan is multi-dimensional, targeting five key areas within the semiconductor domain:

1. Semiconductor Design: Collaborative efforts will be directed towards enhancing semiconductor design capabilities, a cornerstone of innovation in the field. The exchange of technical knowledge and research between the Indian and Japanese semiconductor industries will contribute to expanding design prowess.
2. Manufacturing: The collaboration recognizes the need for increased semiconductor fabrication capacity. Efforts will be directed towards establishing semiconductor fabrication plants (fabs) to cater to the growing demand for specialized chips.
3. Equipment Research: A critical component of semiconductor manufacturing is the development of cutting-edge equipment. The partnership aims to foster research in semiconductor equipment, further contributing to the technological advancements of the industry.
4. Supply Chain Resilience: In the wake of recent supply chain disruptions, there is a renewed emphasis on building resilient supply chains. The collaboration seeks to address vulnerabilities and enhance the reliability of the semiconductor supply chain.
5. Talent Development: Recognizing the importance of skilled personnel, the partnership will focus on nurturing talent within the semiconductor ecosystem through skill exchange programs, workshops, and training initiatives.

Shared Policy Goals:

The collaboration between India and Japan is rooted in shared policy objectives that prioritize technological self-reliance and innovation-driven growth. India's "Make in India" initiative and Japan's "Society 5.0" vision converge on the goal of nurturing domestic technological capabilities. Both nations have aligned their policies to support semiconductor manufacturing and research, creating a conducive environment for bilateral cooperation.

Harnessing Strengths:

Japan's advanced semiconductor industry positions it as a global leader in chip manufacturing and research. On the other hand, India boasts a rapidly growing information technology sector and a rising demand for semiconductor products across diverse industries. The collaboration capitalizes on these complementary strengths, forming the basis for a mutually beneficial partnership.

Addressing Complex Challenges:

Supply chain disruptions and geopolitical tensions have emphasized the need for diversifying semiconductor supply chains and fostering cross-country collaboration. By pooling resources and expertise through joint research initiatives, complex challenges in semiconductor design, manufacturing processes, and materials science can be tackled more effectively. This collaborative approach expedites innovation and the development of cutting-edge solutions.

Global Implications:

The partnership between India and Japan holds significant implications for the global semiconductor landscape. As technology evolves, the collaboration will remain dynamic, addressing emerging challenges such as semiconductor miniaturization, integration of artificial intelligence, and advancements in quantum computing. This partnership resonates across the global technology ecosystem, influencing the dimensions of geopolitical partnerships in the Indo-Pacific region.

Consolidation of Like-Minded Partners:

The bilateral agreements between India and Japan, as well as India and the United States, reflect the consolidation of like-minded partners in the Indo-Pacific region, particularly in the realm of critical technologies. These agreements acknowledge the geostrategic and national security implications of such collaborations. This alignment gains significance in the context of the U.S.'s CHIPS and Science Act of 2022, which introduces constraints on semiconductor manufacturing expansion by countries deemed a direct threat to the U.S., including China.

Diversification and Confidence:

The cooperation exemplifies the trust vested in India by the Quad countries, comprising India, Japan, Australia, and the United States. It signifies India's growing capabilities in semiconductor development and related technologies. By synergizing Japan's technological expertise with India's innovation and design capacities, the collaboration paves the way for a future characterized by advanced electronics, enhanced connectivity, and a shared commitment to technological excellence. The partnership also reflects the potential of strategic alliances in fostering global innovation and addressing complex challenges in an interconnected world.

Conclusion:

The collaboration between India and Japan in the semiconductor sector stands as a testament to the power of strategic partnerships. With a holistic approach encompassing design, manufacturing, research, supply chain resilience, and talent development, this collaboration has the potential to reshape the global semiconductor landscape. By combining strengths and aligning policy objectives, both nations are poised to leverage the transformative potential of technology in advancing their economies and enhancing national security.

Source – The Hindu