Prime Minister Narendra Modi's recent visit to Sendai, Japan, alongside Japanese Prime Minister Shigeru Ishiba, has underscored the growing strategic partnership between the two nations, particularly in the burgeoning semiconductor sector. The visit, which included a tour of the Tokyo Electron Miyagi Ltd (TEL Miyagi) semiconductor plant, signals a significant boost for India's ambitions to become a key player in the global semiconductor supply chain.
Modi's visit to TEL Miyagi, a leading Japanese company in the semiconductor sector, provided a firsthand look at the advanced manufacturing capabilities and the crucial role the company plays in the global semiconductor value chain. He was briefed on TEL's ongoing and planned collaborations with India, highlighting the potential for synergistic growth between the two countries. This collaboration aims to leverage Japan's expertise in high-tech manufacturing and India's expanding semiconductor ecosystem.
During his address, Modi emphasized the historical ties between India and Japan and reiterated his commitment to elevating the partnership to new heights, especially in technology and innovation. He stressed the importance of strengthening cooperation in the semiconductor sector, noting the potential for collaboration in fabrication, testing, and supply chain development. This aligns with the "Make in India" initiative, with Japan emerging as a key partner in achieving semiconductor ambitions.
The discussions between Modi and Ishiba underscored the strategic importance of their cooperation, especially considering the global demand for semiconductors. With India's rapidly developing tech sector and Japan's leadership in semiconductor technology, the two nations are well-positioned to create resilient and secure supply chains. Both leaders reaffirmed their commitment to the India-Japan Semiconductor Supply Chain Partnership, which aims to fortify their roles in the global tech ecosystem. This partnership, formalized in 2023, is designed to create a diversified network that could potentially outperform traditional hubs in East Asia.
This collaboration is not just about manufacturing but about creating a complete ecosystem encompassing design, manufacturing, research and development, talent, and supply chain management. Several initiatives are already underway, including Renesas' $915 million OSAT (Outsourced Semiconductor Assembly and Test) facility in Gujarat and the Tata-Tokyo Electron's $11 billion wafer plant in Dholera. These projects are fueled by Japanese Yen loans and India's Production Linked Incentive (PLI) schemes, fostering innovation and reducing reliance on China-centric hubs.
The India-Japan Economic Security Initiative, which focuses on semiconductors, critical minerals, clean energy, and pharmaceuticals, further solidifies this cooperation. It aims to build resilient supply chains, protect key technologies, and secure critical infrastructure. This initiative also addresses cyber threats and recognizes the increasing importance of digital security in modern warfare, leveraging India's software expertise and Japan's hardware capabilities.
Japan has set an investment target of 10 trillion yen (approximately ₹60,000 crore) in India over the next decade, signaling a strong commitment to boosting economic partnership. This investment, coupled with India's $9.2 billion ISM (India Semiconductor Mission) fund, is expected to create a virtuous cycle of capital, talent, and innovation.
Overall, PM Modi's visit to Sendai marks a pivotal moment in India-Japan relations, with the semiconductor sector emerging as a key pillar of their strategic partnership. This collaboration is expected to not only boost India's semiconductor manufacturing capabilities but also contribute to a more resilient and diversified global semiconductor supply chain.
