New Delhi: Japan's Ambassador to India, Hiroshi Suzuki, on Thursday welcomed the Union cabinet's approval of the Memorandum of Cooperation (MoC) between the two nations on semiconductor supply chain, calling it a "significant step" towards strengthening ties in this sector.

Taking to his official handle on X, Suzuki posted, "Delighted to witness the approval of the MoC on semiconductors between India and Japan. This collaboration is a significant step towards strengthening our ties in this sector. Looking forward to further advancing our cooperation in this crucial field."

He made the statement in response to Prime Minister Narendra Modi's post on the cabinet's approval of the MoC between India and Japan in semiconductors.

PM Modi stated that the step will strengthen the semiconductor supply chain and create job opportunities.

PM Modi posted from his official X handle, "This decision by the Cabinet is great news for the sector. It will strengthen the semiconductor supply chain and create job opportunities."

On October 25, the Union Cabinet acknowledged the Memorandum of Cooperation (MoC) signed in July 2023. This MoC between the Ministry of Electronics and Information Technology of India and the Ministry of Economy, Trade, and Industry of Japan focuses on the Japan-India Semiconductor Supply Chain Partnership, according to a press release issued by the Cabinet.

The primary objective of this MoC is to bolster the collaboration between the two nations, acknowledging the pivotal role that semiconductors play in the advancement of industries and digital technologies. This Memorandum of Cooperation will become effective from the date of its signature and will remain in force for a duration of five years.

The collaboration under this MoC spans both Government-To-Government (G2G) and Business-to-Business (B2B) initiatives, focusing on creating opportunities to advance a resilient semiconductor supply chain while leveraging the respective strengths of India and Japan, according to the press release.

In addition to fostering cooperation between the two countries, the MoC is expected to bring about improvements in collaboration that could, in turn, lead to employment opportunities within the IT sector. The Ministry of Electronics and Information Technology (MeitY) has been actively working to establish an enabling environment for electronics manufacturing, read the press release.

The "Programme for Development of Semiconductor and Display Manufacturing Ecosystem in India" was introduced to ensure the robust and sustainable development of semiconductor and display ecosystems within the country.

This programme also provides for fiscal support for the establishment of Semiconductor Fabs, Display Fabs, Fabs for Compound Semiconductors, Silicon Photonics, Sensors, Discrete Semiconductors, Semiconductor Assembly, Testing, Marking, and Packaging (ATMP), as well as Outsourced Semiconductor Assembly and Test (OSAT) facilities, according to the press release.

The "India Semiconductor Mission (ISM)" was established under the Digital India Corporation (DIC) to steer India's strategies for the development of a semiconductor and display manufacturing ecosystem within the country. MeitY has also been tasked with promoting international cooperation in emerging and frontier areas of Information Technology under bilateral and regional frameworks.

To fulfil this objective, MeitY entered into Memoranda of Understanding (MoUs), Memoranda of Cooperation (MoCs), and Agreements with counterpart organisations and agencies of various countries to facilitate bilateral cooperation, information exchange, and the development of resilient supply chains, positioning India as a trusted partner in the global landscape, read the press release.

The India-Japan Digital Partnership (IJDP) was launched in October 2018 during Prime Minister Modi's visit to Japan, furthering existing areas of cooperation and introducing new initiatives within the scope of cooperation in Science and Technology/Information and Communication Technology (S&T/ICT), with a particular focus on Digital ICT Technologies.

"Building upon the ongoing IJDP and India-Japan Industrial Competitiveness Partnership (IJICP), this MoC on Japan-India Semiconductor Supply Chain Partnership aims to extend the scope and depth of cooperation in the electronics ecosystem," read the release.

"Recognising the importance of semiconductors for the advancement of industries and digital technologies, this MoC would provide for the enhancement of semiconductor supply chain resilience," it added.