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The Union Cabinet has approved a memorandum of cooperation (MoC) between India and Japan on a Semiconductor Supply Chain Partnership. The memorandum of cooperation between the two countries was signed in July. Japan has become the second Quad partner after the US to sign an agreement with India for the joint development of the semiconductor ecosystem and maintain the resilience of its global supply chain.

The MoC intends to strengthen cooperation between India and Japan towards enhancement of semiconductor supply chain, recognising the importance of semiconductor for the advancement of industries and digital technologies. The MoC will come into effect from the date of signature of the parties and remain in force for a period of five years.

Both G2G and B2B Bilateral Cooperation on opportunities to advance resilient semiconductor supply chains and leverage complementary strengths. In view of synergies and complementarities between the two nations, the ‘India-Japan Digital Partnership’ (IJDP) was launched during the visit of the prime minister to Japan in October 2018 to boost cooperation and new initiatives within the scope of cooperation in science and technology and information and communications technologies. 

Based on the ongoing IJDP and India-Japan Industrial Competitiveness Partnership (IJICP), this MoC on Japan-India Semiconductor Supply Chain Partnership would further broaden and deepen the cooperation in the field of electronics ecosystem. Japan is among the top five countries to have a semiconductor ecosystem, with around 100 semiconductor manufacturing plants.