Page 10 - The Indian EYE 083024

OPINION AUGUST 30, 2024 | The Indian Eye 10

The initiatives in and importance

of India-Japan Semiconductor

Supply Chain Partnership

China and other Asian countries are ideal locations for assembly, testing and packaging since these

are labor-intensive stages. Countries can move up the value chain to higher-value activities as the
country’s economy and the skills of its workforce grow

GAYATRI SINGH Japan is focused on revitalizing its semiconductor industry as its share of the global semiconductor market declined from 80% in the 1980s to
around 10% in recent years (File photo)
n July 2023, a Memorandum of
Cooperation was signed between
Ithe Ministry of Electronics and enhance business and industrial co- The Global Semiconductor er, the production process is largely
Information Technology (MeitY), operation and identify cutting-edge Landscape concentrated in East Asia.
India and the Ministry of Economy, areas for future collaborations. The The most prominent players in
Trade and Industry (METI) of Japan MoC is the first step in the field of he semiconductor production the industry are the United States,
on the India-Japan Semiconductor semiconductors between India and process can be divided into five South Korea, Taiwan, China and
Supply Chain Partnership. Japan and is aimed at fostering gov- Tstages: research, design, manu- Japan, and the current model of
This partnership is built upon ernment-to-government and indus- facturing, assembly, testing, packag- the supply chain is based on com-
ongoing initiatives between the two try-to-industry collaboration. ing (ATP), and distribution. Different parative advantage, wherein each
countries, like the India-Japan Dig- The partnership is said to focus stages in the production process have country specializes in specific stages
ital Partnership (IJDP) and India-Ja- on five key areas: semiconductor different technical, human and finan- of production in the semiconductor
pan Industrial Competitiveness Part- design, manufacturing, equipment cial resource requirements. Given the global supply chain. The US, Taiwan
nership (IJICP), which are designed research, talent development and complexity of the multi-stage produc- and Japan hold large shares in man-
to drive digital transformation, establishing resilience in the supply tion process, no country is entirely ufacturing and design. Some of the
encourage startup collaborations, chain. self-sufficient in production. Howev- Continued on next page... >>

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