India, Japan to cooperate on semi-conductors

Ajay Banerjee

New Delhi, July 20

India and Japan on Thursday signed a Memorandum of Cooperation for development of a semiconductor ecosystem that will promote manufacturing, research, design, talent development, and supply chain resilience, Union Minister of Information Technology Ashwini Vaishnaw said, at press briefing in New Delhi.

We have reached a decision and will take it forward under a Government-to-Government cooperation, the Minister said adding that an organisation will set up to implement it. There will be industry-to-industry cooperation on which the details are being worked out.

On being asked what is the target for chipsets, if they willbelow 28 nano metre (NM), Vaishnaw said almost 50 percent of the demand in the world is chipsets is from 28NM or greater. The demand for telecom and automobile – both growing sectors in India—is for bigger chipsets.

“We are open minded and want to address all parts of value chain,” the minister said.

On being asked if the facility at Semi Conductors Limited Mohali would be part of the manufacturing, he said “it is yet to be discussed”.

Japan’s Rapidus Corp, which is a semiconductor manufacturer will play a major role. “Rapidus will be playing a role in focusing on the full value chain, instead of what other countries are doing, which is emphasising only on fabrication”.

With Japan, we usually have detailed discussions and once the agreement is signed, it goes on for years, the minister said and cited the example of Maruti-Suzuki.

Japan is a leader in the semiconductor industry and lead silicon wafer and ingot manufacturing. In raw materials, too, such as chemicals and gases, they have a lead. In equipment manufacturing, the Minister said explaining the rationale behind an agreement with Japan.

India can be pitched as a raw material supplier for semiconductors. Dahej in Gujarat can be a raw material supplier hub for global corporations, he suggested.