India and Japan have inked a memorandum of co-operation for semiconductor design, manufacturing, equipment research and talent development, an Indian government statement said on Monday, July 24.
The collaboration with Japan for development of semiconductors will help the Indian government to attract Japanese companies’ participation in the $9.20 billion financial incentive scheme offered to develop semiconductor manufacturing capacities in India, the statement said.
“The two countries will establish an implementation organization to decide on collaboration on government-to-government and industry-to-industry fronts,” Indian federal minister for information technology Ashwini Vaishnaw said in the statement.
A cooperation agreement with Japan will open the scope for Japanese companies such as computer memory manufacturer Kioxia, IT and electronics major NEC Corporation, Sony, among others, for the semiconductor and other electronic components incentive schemes of the Indian government.
“Japan has strengths in silicon wafer and ingot manufacturing, raw materials such as gasses, display and equipment manufacturing. Japan sees India as a partner where complementary strengths can be used,” Vaishnaw said.
“In the entire 100 percent of semiconductor demand, close to 55 percent of demand is going to come from the larger nodes such as 40 nanometers, 60 nanometers, even 90 nanometers, 28 nanometers,” Vaishnaw said.