India-Japan Semiconductor Supply Chain Partnership
Source: PIB
GS I: Geography; GS II: International Relations
Overview
- What is the aim?
- Need for MoC
- Indian Semiconductor industry
- About Semiconductors
Why in the News?
The Union Cabinet apprised of a Memorandum of Cooperation (MoC) signed in July, 2023 between the Ministry of Electronics and Information Technology of the Republic of India and the Ministry of Economy, Trade and Industry of Japan on the India-Japan Semiconductor Supply Chain Partnership.
About India-Japan Semiconductor Supply Chain Partnership
- The MoC intends to strengthen cooperation between India and Japan towards the enhancement of the semiconductor supply chain.
- This recognises the importance of semiconductors for the advancement of industries and digital technologies.
- The MoC shall come into effect from the date of signature of the Parties and shall remain in force for a period of five years.
- Both G2G and B2B Bilateral Cooperation on opportunities to advance resilient semiconductor supply chain and leverage complementary strengths.
- MoC envisages improved collaboration leading to employment opportunities in the field of IT.
Need for MoC
- Recognizing the importance of semiconductors for the advancement of industries and digital technologies this MoC is required.
- Semiconductors are an essential component of electronic devices.
- Semiconductors enable advances in communications, computing, healthcare, military systems, transportation, clean energy, and countless other applications.
- They replaced the tubes in computers, managing machines faster, cheaper, and more efficiently.
- Advances in design and size led us to light and sleek modern phones and smart equipment in a range of industries.
Indian Semiconductor industry
- India’s semiconductor market is set to experience remarkable growth, with projected figures expected to reach $55 billion by 2026.
- This signifies India’s growing emphasis on internal semiconductor production, as well as its desire to establish a formidable presence in the global semiconductor supply chains.
How is India working towards a robust semiconductor ecosystem?
- MeitY has been actively working to create a conducive environment for electronics manufacturing.
- Programme for Development of Semiconductor and Display Manufacturing Ecosystem in India
- It was introduced with a view to ensure the development of a robust and sustainable semiconductor and display ecosystem in India.
- The program aims to extend fiscal support for the establishment of Semiconductor Fabs, Display Fabs, Fabs for Compound Semiconductors/Silicon Photonics/Sensors/Discrete Semiconductors and Semiconductor Assembly, Testing, Marking, and Packaging (ATMP)/Outsourced Semiconductor Assembly and Test (OSAT) facilities.
- Further, the India Semiconductor Mission (ISM) has been established under Digital India Corporation (DIC) to drive India’s strategies for the development of the semiconductor and display manufacturing ecosystem in the country.
- SEMICONINDIA 2023
- The ‘SemiconIndia 2023’ is being organised by India Semiconductor Mission in partnership with industry and industry associations.
- The aim is to make India a global hub for Semiconductor Design, Manufacturing and Technology Development which will help propel the vision of India Semiconductor Mission.
About Semiconductors
- Semiconductors are made from tiny fragments of raw materials.
- The raw materials such as silicon, germanium, and gallium arsenide.
- They are then altered in a process called doping so that they will sometimes conduct electricity and sometimes not.
- The silicon disc or wafer yields dozens of semiconductor chips.
Silicon Distribution
- Silicon is one of the most common elements found in the earth’s crust, second only to oxygen.
- Countries supply the majority of silicon: China, Russia, Brazil, Norway, United States, France, and Malaysia. China has the biggest share.
Gallium
- Around 80% is produced in China.
- Gallium is used to make gallium arsenide for use in electronics.
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