India and Japan to collaborate in building semiconductors and resilient supply chains
India and Japan explored collaborating in critical technologies, including semiconductors and resilient supply chains, as part of plans to reach a target of INR 235000 Crores Japanese investment in the country by 2027, officials said on Friday.
Foreign Ministers of India and Japan, S. Jaishankar and Yoshimasa Hayashi, met in New Delhi on Thursday and also discussed ways to deepen defence equipment and technology cooperation. Hayashi is on a two-day visit to the Indian capital.
Russia’s war in Ukraine has disrupted the global supply of parts and raw materials needed to complete a variety of products – from cars to computer chips.
Hayashi and Jaishankar also emphasized the crucial role of a strong partnership between India and Japan in ensuring an open and prosperous Indo-Pacific region that is inclusive and rules-based, a statement by India’s External Affairs Ministry said.
They discussed cooperation under multilateral and pluralistically frameworks, including the Quad grouping that also includes the United States and Australia, the statement said. The grouping aims at countering the growing challenge posed by an aggressive China in the region.
Jaishankar and Hayashi expressed satisfaction at the strengthening of defence and security cooperation between the two countries, including regular exercises and talks between all three services, the statement said.
Indian Prime Minister Narendra Modi’s ambitions to build a chipmaking industry suffered a potential setback earlier this month as electronics giant Foxconn backed out of a INR 160000 crores semiconductor joint venture with Indian mining conglomerate Vedanta Ltd.
In February last year, the two companies announced their joint venture to manufacture chips and display panels in India.
India has made building a chipmaking sector a national priority as part of a self-reliance policy to secure stable supplies. It is offering financial incentives of up to 50% of project costs under a INR 82000 Crores plan for semiconductor and display manufacturing projects.
India and Japan share strong economic ties. Trade between the two was worth INR 170000 Crores in fiscal year 2021-2022.
